Friday 22 November 2019

C&C profits drop in first half, challenging times for Bulmers maker


Michael Cogley

Drinks company, C&C, have reported a 9.5pc fall in operating profit as the first half of its financial year proved to be a challenging one.

Group earnings before interest and tax (EBIT) fell by 9.5pc year on year also as factors such as unsuitable weather and business model transition took its toll on the company's interim results.

The company, which makes Bulmers cider, reported a €38m reduction in net debt and also showed a 5.1pc increase in the interim dividend.

Chief executive officer of C&C Stephen Glancey, said that once-off factors had a significant effect on the company's results.

“Our performance in the first half reflects difficult trading conditions in our core markets of Ireland and Scotland. Many of the factors contributing to this are one-off or transitional, including poor weather; the transition to a brand led wholesale model; and, legislative change in Scotland," Mr Glancey said.

"In aggregate, the headwinds will adversely impact profitability by €10 million in the financial year. Positively, the reception to our new brands such as Heverlee and Menebrea, access to the Drygate range and the launch of our new craft cider, Dowds Lane Big Vat cider to complement our Five Lamps craft beer in Ireland has been good," he continued.

The company's net revenue fell by 2.6pc to €358.6m while its basic earnings per share also fell by 10.5pc to 13.7 cent.

Operating profits at the company stood at €62.6m, a fall of 9.5pc.

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