C&C operating profits fall

C&C said today that first-half operating profit fell 13.6 per cent to €57.4million from €66.4 million.

The company said that revenue fell by 10.5 per cent from €287.5 million to €257.5million while net profit before exceptional items declined to €48.4 million compared to €53.1 million a year earlier.

Despite the decline in both revenue and operating profit, the group’s free cash flow (FCF) remained strong at €53.4m compared to €47.0m in the prior year.

C&C said that cider volumes were unchanged during the six-month trading period while volumes of spirits and liquers declined 15 per cent. The decline was attributed to "continuing de-stocking in major markets."

In Britain, the company recorded a 2 per cent decline in volumes of its Magners brand while in Ireland volumes of Bulmers were flat. The decline in British sales was offset by growth in Northern Ireland and other markets.

Overall, cider revenues in the Republic totalled €90.3million, down 4.2 per cent from €94.3 million a year earlier.

Operating profit here declined by 3 per cent to €29.5m while operating margin improved by 0.5 percentage points to 32.7 per cent on a constant currency basis.

Revenue for Cider in Britain was down 9 per cent from €109.4 million to €90.8 million.

“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,” said John Dunsmore, group chief executive officer.