C&C on target despite challenging autumn
Drinks group C&C is reporting revenue of €257.5m and an operating profit before exceptional items of €57.4m (down 2%) for the six months to the end of August.
The group, which makes Bulmers cider in Ireland and Magners in the UK, said its cider volumes were level, but spirits and liqueurs volumes were down 15% in the period. The group had set an objective to stabilise cider volumes in 2009-10.
An interim dividend of 3c per share will be paid in December 2009. C&C said today that there was no change to its objective to pay a dividend of 6c per share in 2009/10 in line with previous guidance.
Business developments in the six months to the end of August included the launch of Bulmers & Magners Pear and the completion of a deal on September 28 for the acquisition of the Irish, Northern Irish & Scottish businesses of AB InBev for €205m.
The group said in this morning's statement to the stock exchange that its marketing investment plans are under review following the acquisition of Tennent's lager and weaker trading in August and September.
C&C said a restructuring programme - including 120 lay-offs and a pay freeze - was on track to deliver €5m of savings.
Group boss John Dunsmore said: "Following a positive start to the first half, trading conditions in August and September have been more challenging. However, we remain on track to deliver on the objective of stabilised volumes and a full-year operating profit outcome in line with our stated guidance."
