C&C revenue lower on weak cider sales

Drinks group C&C Group said today it expects to report stagnant first half earnings after a sales decline worsened.

Drinks group C&C Group said today it expects to report stagnant first half earnings after a sales decline worsened.

Operating profit in the six months through August will be "broadly unchanged" on the same period last year, the firm said in a statement.

Revenue for the six months to 31st August, is expected to be down by 8 per cent compared with the same period in 2007. Operating margin is expected to increase by approximately one and a half percentage points in the same period.

Revenue at the cider unit is expected to fall about 11 per cent, compared with a 10 per cent drop in the four months through June.

Cider sales volumes fell about 11 percent in Ireland and 15 percent in Britain.

The company said sales had been low due to the cumulative impact of two consecutive poor summers and as a result of the deteriorating economic environment in Ireland and Britain.

C&C said it expects current market conditions to continue throughout the second half of the year, which will
lead to "continued pressure" on sales and operating profit.