C&C expects revenues to fall 13% this year

Cider maker C&C said it expects revenues this year to decline by 13 per cent and is forecasting an adjusted operating profit of €90 million.

In a trading update, the company said revenues in its cider business are set to fall by 17 per cent, as sales of Bulmers in Ireland decline 14 per cent and Magners in the UK by 23 per cent, due to the economic slowdown and its impact on consumer confidence.

The company said market conditions appear to be worsening and that increased price sensitivity by consumers was a risk.

The company notes that the stronger euro against sterling had reduced its cost competitiveness in the UK. C&C said its objective was to sustain an annual dividend of 6 cent per share.

C&C plans to write-down the value of its Clonmel manufacturing plant in Co Tipperary by €130 million, to "streamline" its executive structure and change its marketing department.

The changes are expected to lead to a once-off reorganisation charge of €12 million and C&C is anticipating cost savings of around €5 million this year.

Excess apple juice stocks are to be written off at a cost of €11 million to the company.

John Dunsmore, chief executive said: "In the course of the next 12 months, we expect to make major progress on cost competitiveness and move to make the business leaner and faster to reach to market-led changes".

At 11.05am shares in C&C were ahead over 13 per cent at €1.02.