The recent wet weather in the UK and Ireland has wiped €690m off the value of alcoholic drinks group C&C today.
Its share price closed down 27% at €5.99 in Dublin after it said that UK cider sales have further declined during the last two weeks with a knock-on effect expected into August, and it now forecasts its half year profit to be down 35%.
It said the weak performance reflects sustained wet weather in the UK and Ireland and increased competition in Great Britain.
The group had warned earlier this month that full year profits would fall below expectations after the bad weather had attracted fewer cider drinkers in the UK.
In 2006, sales of Magners grew by 225% after it went on sale in England for the first time, having been sold in Scotland since 2003. In Ireland the brand is sold as Bulmers.
It said on July 13 that it expected operating profit for the full year ending February to be flat against last year, at around €213m - including a decline in operating profit for the six months ended August 31 2007.
It had originally forecast profits growth in the range of 15-20%.
'The impact of the extremely poor weather on summer recruitment, together with increased competition, leaves a degree of uncertainty in respect of the outlook for the second half year for the cider division', it said today.
It said it plans to maintain its marketing spend in the second half and reduce costs in other areas.
C&C will issue its half year results on 10 October.
