SUMMER RAINS ON C&C PROFITS - C&C has announced a 33% decline in first half profits to the end of August. The results are almost as gloomy as the company itself predicted in a summer time profit warning when it became apparent record wet weather was dampening the appetite for its cider brands Bulmers (Ireland) and Magners (Britain).
Profits are down 33%, earnings per share down almost 40% and revenues are flat. There is more pain to come with C&C this morning saying there will be a high single-digit percentage decline in cider revenue in the second half of their year.
C&C chief executive Maurice Pratt says the firm had doubled its cider manufacturing capacity in anticipation of attracting new customers, but that the lack of warm weather, which is crucial to cider sales, meant it was unable to do so.
He also said that an extensive consultation process must be completed before it known for sure whether there will be any further job losses at its Clonmel plant.
Mr Pratt says there has been a positive consumer reaction to its cider in Barcelona and Munich, but that a lack of understanding of cider in both Spain and Germany will have to be addressed.
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PROVIDENCE STRIKES OIL - Exploration company Providence Resources has confirmed it has made a significant oil discovery at Hook Head, off the south east coast.
‘We are very pleased to have confirmed Hook Head as a significant oil accumulation with hydrocarbon bearing reservoirs over a large area,’ chief executive Tony O'Reilly said.
Providence has the largest stake in the Hook Head project, which includes other partners.
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CURRENCIES - The euro is worth $1.4112 and £0.6925.
