Drinks group C&C has reported profits for the year to the end of February which are broadly in line with expectations.
Revenue for the year fell by 11% to €514.4m, while there was a trading loss of €59m. Excluding once-off charges, operating profits were down 27% from a year earlier to just over €90m. The group has maintained its forecast for the current financial year, saying it expects operating profits of €77m to €82m.
The group says its sales were hit by the economic downturn, poor summer weather last year and the stronger euro against sterling. Cider sales fell 15% to €386,8m, while cider profits were down almost 22% to €84.8m. Bulmers sales in Ireland were down 14%, while Magners in the UK dropped 18.7%.
The group says it has seen an increasing shift from the pub trade to the off-licence sector. It has launched Bulmers and Magners Pear recently and says early signs are encouraging.
Revenue in the spirits and liqueurs business rose by 1.3% to €85.9m, excluding currency movements, while profits were up 6% to €17.8m.
C&C shares closed up 14 cent at €1.94 in Dublin.
'Mixed' start to new financial year
As it signalled earlier, C&C has written down around €130m linked to the value of buildings and equipment at its Clonmel plant, where it cut 103 jobs earlier this year. There was also a charge of €12m linked to restructuring. These, along with a writedown linked to excess stocks of apple juice, led to a pre-tax loss fo €65.8m for the year.
A final dividend of three cent per share will be paid, giving a 66% lower total of nine cent for the year.
C&C says trading for the first ten weeks of the new financial year has been mixed. Cider volumes have risen, but overall revenues have been flat because of lower prices. In Ireland, Bulmers sales are up 10%, helped by the timing of Easter, better weather and Irish rugby success. In Britain, cider sales are up 9% because of a promotional campaign in off-licences.
