Shares in drinks group C&C fell more than 18 per cent today reducing the value of the company by up to €500 million after a stock sell-off followed a warning that the poor weather this summer would result in lower cider sales.
C&C cut its full year profit goal today after saying weaker-than-expected growth in cider sales in rainy Britain meant operating profit would now be approximately in line with last year.
At 3.45pm C&C shares were down at €8.23 from €10.14 on the Dublin market, a fall of over 18 per cent.
C&C had set a target for 15 to 25 per cent growth in the year to February 2008 and reiterated the goal as recently as May when it reported an 84 per cent jump in full-year earnings thanks to strong growth for its Magners cider brand in the United Kingdom.
However C&C said this morning that very poor weather in June and into July together with continued heavy price-led competition is likely to lead to a weak second quarter. C&C also makes Bulmers cider in Ireland.
"While the group expects strong volume growth for the full year in Great Britain it is reducing its sales volume expectations," the company said ahead of its annual shareholder meeting.
The Dublin-based company said cider sales had grown at an annual rate of 38 per cent in volume terms in the three months to the end of May, driven by an 89 per cent increase for Magners in Britain and a 2 per cent rise for its Irish Bulmers brand.