C&C predicts that its revenues will fall by about 13% for the year ending February 2009, while it sees its adjusted operating profits reaching €90m.
In a trading update, it says that revenues in its cider business are set to fall by 17%, representing a decline for Bulmers in Ireland of 14% and 23% for Magners in the UK.
The group said that over the last year the rapid economic slowdown and the resulting impact on consumer confidence have been challenging for the group. The poor summer weather of last year also had a negative impact, while the strengthening of the euro against sterling reduced its cost competitiveness in the UK market.
C&C said it would write down the value of its Clonmel manufacturing plant in Co Tipperary by €130m. Last month it cut 103 jobs in Clonmel, while another 11 went at its operations in Dublin and seven jobs were lost in the North. In today's trading statement, it said that it was streamlining its executive structure while it has also made changes in its marketing department.
It said it intends to take a once-off reorganisation charge of €12m, while cost savings are estimated to reach €5m in 2009/2010.
C&C also said that its stock holding of apple juice was excessive in light of what it will need in the future. The intended disposal of this surplus stock will result in a write-down of approximately €11m.
Looking ahead, C&C said that market conditions in both Ireland and the UK are, if anything, getting worse and increased price sensitivity by consumers presents risks to its brand portfolio.
The drinks group also said that the negative impact of recent currency rate exchange movements is likely to be about €16m.
'In the course of the next 12 months, we expect to make major progress on cost competitiveness and move to make the business leaner and faster to reach to market-led changes,' commented John Dunsmore, Group CEO.
C&C shares closed up nine cent at 99 cent in Dublin.
