C&C on track to deliver 5pc growth in profits
Published 04/07/2014 | 02:30
BULMERS maker C&C has said it is on track to boost its operating profit by about 5pc this year.
The drinks giant delivered a solid performance in Ireland and Scotland in the first four months of its financial year.
However its US performance from March to June was weak but broadly in line with expectations, it added.
"C&C believes that the fundamentals of its core markets and its position within those markets support continued earnings growth," it said.
"For the current financial year, C&C remains on track to deliver its financial objective of mid-single digit operating profit growth."
Shares in the company dipped by 1.45pc to €4.54 in Dublin yesterday as it released an interim statement.
The most recent annual results revealed its pre-tax profits grew to €116.2m at the end of February, while revenues soared by 30pc.
The second quarter has been tougher in Ireland and Scotland - where the integration of Wallaces Express and Tennent's is underway - but the business remains on track for good earnings, it stated. The markets account for over 70pc of group profits.
"The trading environment for cider in England and Wales is still challenging but is now less relevant to the group's economics," C&C reported.
"In the USA investment behind the new marketing campaign and packaging for Woodchuck, which was acquired in 2012, has started in the Great Lakes territory and its new $34m cidery is scheduled to officially open in August.
"Excluding the USA, volumes in other export markets were up double digits in the first four months of the year," it added.
"Our balance sheet remains strong and there have been no significant changes in the financial position of the group."