C&C expected to report operating profits of €132 million
International division is forecast to be the main driver of growth
Drinks company C&C is due to report its first quarter results this Thursday, as well as providing its guidance for the full year.
Goodbody food and beverage analyst Liam Igoe predicts further volume declines for C&C-produced Magners UK in 2014, as difficult market conditions are compounded by continuing investment in the cider sector.
“The international division is forecast to be the main driver of growth through the full-year inclusion of the Vermont Hard Cider and the continued growth in cider, particularly in the US.”
Goodbody is forecasting FY14 operating profits of €132.7 million for C&C. Davy Stockbrokers analyst Barry Gallagher is predicting similar profits, which equates to about 3 per cent organic growth.
First quarter revenue last year for the Republic of Ireland was down 11 per cent, while UK cider revenue fell 25 per cent. However, export revenue rose 47per cent and Tennent’s revenue was up 5.4 per cent.
Last year, C&C issued a range for FY guidance at the EBIT level (€112-€118 million) with similar guidance expected by Davy this year.
UK pub and hotel chain Greene King, last week published its preliminary results which showed Brewing & Brands core own-brewed volume grew 1 per cent over the last 12 months.
Greene King said trading in the current period has been strong, with retail sales up 3.3 per cent while average EBITDA per pub up 5.1 per cent. However, management noted that it expects market conditions to remain difficult.