Drinks group C&C has reported pre-tax profits of €78.8m for the year ended February 2010. This compares to losses of €65.8m the previous year and modestly exceeded expectations.
Revenues rose by 16.4% to €568.8m, while underlying revenues - which exclude the impact of acquisitions - fell by 8.6% to €446.6m.
C&C said that its recent acquisitions contributed a total operating profit of €6.4m. This was made up of €7m from Tennent's and a loss of €0.7m from Gaymers.
Underlying cider volumes fell by 2.4% in the 12-month period. This included a 2.8% decline in Bulmers volumes in Ireland and a 2.2% fall in Magners volumes. Magners fell by 4.9% in the UK but this was offset by a 9.6% increase in volumes in the rest of the world, including Northern Ireland.
Volumes in its spirits and liqueurs fell by 4.1% with volumes recovering in the second half of the year after a 15% slump in the first half. Since the year ended, C&C has announced a deal to sell the division for €300m - subject to shareholder approval.
The company has proposed a final dividend of three cent per share and its proposed full year dividend is six cent per share, down 33.3% on the previous year.
C&C said that market conditions in both the Irish and UK markets remain tough. It said that during the year it made continued progress towards addressing the performance of its Bulmers and Magners brands. These included the launch of Bulmers Pear in Ireland and a 10% cut in the wholesale price of pint bottles in pubs.
In the last few weeks, it has also launched Bulmers Berry in Ireland and announced a 2.4% cut in the wholesale price of draught Bulmers.
During the year, the company restructured its business by cutting 154 jobs and implementing a pay freeze with wage cuts in certain areas. It says these - and other measures - are expected to result in savings of €5m in 2010.
C&C said that revenue for cider in its Irish operations fell by 8.2% on the same time last year to €153m. Operating profits declined by 2.2% on a constant currency basis to €44.3m. It said that Bulmer volumes fell by 2.8% due to a weak long alcoholic drinks market and a challenging economic environment.
Revenues for cider in the UK dropped by 9.1% to €149m, while operating profits rose by 48% to €19.7m. C&C's spirits and liqueurs division saw revenues fall by 9.1% to €78m, while operating profits decreased by 7% to €14.7m.
'We are pleased to report an operating profit performance modestly ahead of stated guidance,' commented the company's chief executive John Dunsmore.
'The performance of the underlying and the acquired businesses, together with identified synergy benefits, support our current expectation of earnings growth' for the year ahead,' he added.
In a trading update also issued this morning, C&C said underlying revenues in March and April were down 1.7% from the same period last year, with a 3% fall in cider revenues. There was a 7.8% drop in cider revenues in the Republic of Ireland after a price cut implemented in June last year.
These figures excluded the impact of acquisitions and currency movements. When these were included, revenue was up almost 70% from a year earlier.
C&C shares closed down 2.5% at €3.21 in Dublin.
