Operating Profits Down 7.9% At Cider Maker C&C Group In H1
Ireland-based C&C Group, which owns the Magners cider and Tennent’s beer brands has reported an operating profit decline of 7.9% in the first half of the year, to €55.1 million.
The group said that ‘incremental investment in marketing [including a spend of €3.6 million on promoting its core brands] and price support are significant factors’ that contributed to the profit decline.
It noted that the fall in the value of Sterling, following the Brexit vote, had an ‘adverse impact on reported revenues and operating profits of €24.4m and €2.8m, respectively’. C&C Group posted net revenue of €307 million in the period.
Its Bulmers cider brand in Ireland saw volumes increase by 6%, while Tennent’s was up 2% in its core Scottish market. Magners brand volumes were up 11%.
“In the first half Bulmers grew by 6%, Tennent’s by 2% and Magners by 11% supported by increased brand investment and organisational focus,” said Stephen Glancey, C&C Group chief executive.
“It is also pleasing to note continued growth in export with Tennent’s volumes particularly strong up 50% in the period. While reported earnings have been impacted by a combination of accelerated investment and currency we believe that this level of investment ultimately underpins long term brand values.”
© 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.