C&C reports double-digit decline in cider revenue
Drinks group C&C today said its cider markets remain challenging as it reported another slump in sales.
C&C said cider volumes fell 9% in the three months to November 30, compared with the same period a year earlier.
But C&C said it had seen a pick up in December, when volumes were 3% ahead amid late ordering from trade customers.
The group expects a “modest” year-on-year decline in cider volumes for the full financial year to February 28, compared with a decline of 14% in the previous year.
It expects to report operating profits in line with previous guidance, towards the top end of a €77m-to-€82m range.
The group said it had lost market share in trade in December as its prices rose, but said volumes held firm.
C&C has been battling to improve its performance after sales slumped in the last financial year and the firm failed to convert “the strong brand equity in Magners” into improved market performance.
It has sought to expend and diversify its business in recent months, notably with the acquisition of Tennent’s lager in September.
Today C&C said the brand would make a €7m contribution to operating profits for the full year, ahead of expectations.
The firm is also buying the Gaymers cider firm and the deal is expected to complete by the end of January.
C&C said business conditions in its core cider markets “remain challenging”.
Sales, excluding the impact of Tennent’s, were 7% lower in the nine months to November 30 compared with the previous year, reflecting an 8% decline in cider and 14% for its spirits and liqueurs division.
But shares rose 3% after the group’s confirmation of expectations for full-year earnings at the top end of forecasts.
