C&C Anticipates Profit Drop After 'Competitive Pressures' In Ireland
Irish drinks company C&C Group is anticipating operating profit for the year ending February 2018 to be around €86 million, which would mark a drop from the €103.2 million achieved in the previous year.
In a trading update before the group's full-year figures are set to be announced in May, C&C said that performance was 'broadly in line with management expectations', despite weather-related disruption.
The group, which manufactures and distributes cider, beer and soft drinks, said that its Tennent's brand saw strong revenue growth in Scotland, as did its super-premium brands.
Magners cider, meanwhile, returned to volume growth, with 'momentum building' through the first year of its distribution parternship with AB InBev.
In Ireland, off-trade and on-trade packaged drinks showed 'resilient trading', but the group warned that 'competitive pressure in draught remain intense'.
During the year, C&C made a €42 million investment in the UK on-trade through Admiral Taverns, which contributed an additional €1.1 million to group earnings.
The company also invested a further €12 million in its portfolio of craft brands.
In the US, C&C ended its distribution arrangement with Pabst Brewing Company, and announced that its subsidiary Vermont Hard Cider Company will now be fully responsible for its US cider portfolio, which includes brands such as Woodchuck, Wyder's and Magners.
Looking ahead, the group says that the performance of its Scottish businesses and premium brands has been 'encouraging', and that these areas are 'well positioned to deliver further value growth' this year.
C&C added that it expects performance in Ireland to improve, while the UK market remains challenging but resilient.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.