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C&C reports weaker than expected first quarter

C&C's core markets of Ireland and Scotland were impacted by unseasonably cold and wet weather
C&C's core markets of Ireland and Scotland were impacted by unseasonably cold and wet weather

Drinks group C&C has said that trading conditions in its fiscal first quarter were "mixed".

In a trading statement for the period from March to today, C&C said its core markets of Ireland and Scotland were impacted by unseasonably cold and wet weather, particularly in May.

Its performance was also hit by the strengthening of new 'drink-driving' laws in Scotland.

However its C&C Brands unit, its business in England and Wales, saw trading in line with its expectations.

The company - which makes, sells and distributes cider, beer, wine and soft drinks - also said its US first quarter shipments were up year-on-year.

However the gains came amid "soft" comparisons the same time the previous year.

C&C said that the US cider category remained highly attractive and it is "firmly committed to capitalising on its longer-term growth potential".

The company's export unit also saw a good start to the year, with solid performances in Asia, Australia and Europe. It said that new market opportunities in Africa and Eastern Europe are in various stages of development.  

"Following weaker than expected trading conditions in the first quarter, we anticipate a gradual improvement in core market performance as year progresses," the company said. 

"In the US and other export markets, a return to growth is the target. For C&C Brands, the objective for the financial year is earnings and volume stabilisation," C&C added.