Shares in drinks group C&C fell 7.8% today after it reported a sharp decline in profitability in its US and UK cider businesses, days after it announced a surprise approach for UK pub chain Spirit.
Shares in the company are down by over 12% since it announced last week it had made an approach about buying the 1,200 pub chain.
Some analysts have questioned the company's ability to manage the asset and the level of possible cost savings.
Spirit rejected the approach, but C&C has until November 20 to submit a firm, improved offer to fend off a rival bid by Greene King.
In its results statement today C&C said it was not allowed to give full-year profit guidance under takeover rules.
C&C said that volumes in the US were down 21% in the first six months of its fiscal year, while operating profits had slumped 90%. The US market is a relatively small part of C&C's business, accounting for €0.7m of profit in the first half.
Overall, C&C said it made an operating profit of €69.2m in the six months to August, down 2.7% from a year earlier.
Revenues for the six months amounted to €368m, an increase of 9.3%.
C&C said its core businesses of Ireland and Scotland were offset by challenges in the US and England and Wales.
It said it was making "excellent" progress in integrating the Gleesons and Wallaces businesses in Ireland and Scotland, adding that the deals are delivering to plan.
C&C's chief executive Stephen Glancey said the company planned to stay in the US market for the "long haul" and said it expected to return to meaningful growth in time.
Operating profit in England and Wales was down by 37%, with Glancey describing the English cider market remained "incredibly competitive." Part of the problem was C&C's lack of scale, he said.
Mr Glancey declined to give additional details of its approach for Spirit group or whether an improved bid was planned, but said C&C was looking for the best return on capital and said several executives had first-hand knowledge of Spirit's business.
