Irish drinks producer C&C Group issues its third quarter interim management statement on Wednesday (16 Jan), with most analysts expecting broadly flat net revenues for the cider-maker in the Irish and UK markets, but continued growth overseas.
“We expect better trading across most divisions – Ireland, Tennent’s UK, Export and Third Party should all show improving trends,” says Barry Gallagher of Davy Stockbrokers. “UK cider, however, is likely to continue to show the weak performance evident in the first half of the year.”
Ireland, he adds, is “likely to have benefitted in the three-month period from a trade buy-in ahead of the Irish Budget.” However, developments in foreign markets are likely to be a key focus as C&C looks into its next financial year, with Davy noting that the Vermont brands recently taken over by the company are growing at a rate of 30 per cent in the States.
At Goodbody Stockbrokers, Liam Igoe expects C&C to “see improved signs of stability” in the third quarter, following a “First half period in which C&C saw its volumes fall by over 17 per cent in its UK cider operations […] Continued declines (6.6 per cent in the first half of the year) in Irish cider sales are expected, albeit at a lower rate, with strong growth continuing in international cider sales (up 32.7 per cent in first half volumes).”
NCB Stockbrokers reiterated C&C’s export potential, noting that the international expansion of the group is “expected to contribute about 16 per cent of operating profit in full year 2014.” (15 Jan)
Source: Checkout
