C&C boost as cider trends improving
Published 15/01/2011 | 05:00
SHARES in C&C jumped yesterday after the drinks manufacturer reiterated its earnings guidance amid improving trends in its businesses.
The maker of Bulmers and Magners cider said it remained on track to post an operating profit of between €102m and €106m for the year ending February 28 despite trading in Ireland that is "challenging and unpredictable".
Revenue from Magners and Bulmers ciders was down 3.4pc in the nine months to November 30, although volumes increased 1.1pc. Volume from operations in the Republic fell 1.7pc but Magners in the UK saw an increase in volume of the same percentage. Magners in the rest of the world jumped 36.7pc but from a much lower base than the UK and Ireland.
Davy's Brian Fagan said he expected C&C to be debt free by year end.
"Magners trends continue to improve in GB to the point where C&C has achieved its target in line with the category. Performance in Ireland was slightly better than expected, but we are cautious on the outlook."