C&C Group Sees 6.8% Drop In Revenue As Cider Business Struggles
Irish-based drinks company C&C Group has reported revenues of €273.1 million in the first half of the year, representing a 6.8% decline.
The group, which manufactures and distributes cider, beer and soft drinks, saw operating profit drop by 4.9%, to €50.5 million, while diluted earnings per share fell by 3.7%.
"Volatile market conditions remain across the industry," said Stephen Glancey, CEO of C&C Group.
"We are pleased our GB businesses have made a solid start to the second half of the financial year, however, in Ireland, where the cider category remains highly competitive, trading has been marginally slower than expected."
C&C says that its Tennent's beer business experienced a strong performance in the first half, with revenue growing by 5%.
In Ireland, Bulmers cider saw 2% volume growth in the retail channel, boosted by its '100% Irish' campaign and the launch of Outcider, however, brand volumes were down by 5%, reflecting reduced draught distribution and a weaker cider category.
Meanwhile, the group saw strong organic growth in super-premium and craft beverages, with volumes increasing by 24% across the company portfolio, contributing revenue of €7.8 million.
Going forward, C&C Group says that it will continue to invest in its core brands in Ireland and evolve its business model in Great Britain.
"Our cash generation and balance sheet remain robust, allowing us to fund continued investment in our brands and supplement shareholder returns through a progressive dividend," added Glancey.
"Looking further ahead, we are increasingly confident that our brands, market positions, operational investments and now enhanced route-to-market infrastructure in GB will return the business to growth and deliver enhanced shareholder value over the medium term.”
© 2017 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.