C&C revenues down on weak cider sales

C&C Group said revenues for the four months to the end of June were 8 per cent lower than the same period in 2007 due to a fall in cider sales.

In an interim management statement, C&C said cider sales in the Republic of Ireland and the UK were 10 per cent lower although this was partially off-set by a 3 per cent increase in sales of spirits and liqueurs.

In the Republic, the company said the decline in cider revenue reflected weak pub sales. After a slow start, the launch of Magners Draught in the UK was "now progressing well".

The firm says that its overall performance during the first three months of its fiscal year - March to May - was "broadly satisfactory". However trading was weak in June, it adds.

Looking forward the company said the outlook remains "uncertain" due to weakening economic conditions and poor weather. Cider sales traditionally increased during good summers.

C&C said it expects revenues to the half-year at the end of August to be lower than last years but added that operating margins should "at least, offset the impact of revenue decline on operating profit".