C&C Group Sees Revenue Decline 3.1% In Full Year
Drinks firm C&C Group has posted its results for the 12 months to 29 February, reporting a 3.1% decline in net revenue to €662.6 million for the period.
The maker of Bulmers and Tennents saw its EBITDA decline by 12.4% for the year (€122.6 million) and operating profit decline 10.3%.
Its core Irish market saw revenue decline 12.6% to €358.1 million, with the poor weather last summer partly to blame for its performance.
‘Through the key summer trading months, the weather was very poor across Ireland with record lows in average temperature,’ the company said. ‘This resulted in big challenges for brands that benefit from ‘refreshment’ and a tailwind for products with a heavier taste profile.’
However, C&C Group also said that the Irish market was showing signs of ‘resilience’, noting that ‘in the last quarter of FY2016, cider was resilient within the Irish LAD category. Bulmers rate of sale per point of distribution, the acid test of a brand’s strength and durability, remains compelling versus any other competitor cider’.
In Scotland, the company saw its revenue decline 6.3% to €339.8 while its C&C Brands business in England and Wales saw a 10.9% decrease in revenue. Export revenue was up 12.4%.
“While cider exports support jobs and agriculture in Ireland we recognise that the performance of Tennent’s in International markets does the same for Scotland,” said Stephen Glancey, C&C Group chief executive.
“Our beer business also continues to capitalise on the opportunity in international markets and our Tennent’s brand grew last year by 34% as we opened new territories in Asia and Africa. In recent months we have finalised a number of new distribution deals and this will again sustain growth in the current financial year. Around 9% of our own brand volume is now sold internationally, underpinned by growth of 22% per cent in our Export segment in the last year.”
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.