Bad weather impacts sales and profits at Bulmers owner C&C
Poor summer weather impacted sales at Bulmers owner C&C as revenue fell by 4.9pc to €548.2m at the group in the 12 months to 28 February.
Operating profit at the group, who’s brands also include Tennents, Finches, and Clonmel 1650, fell by 7pc year-on-year to €86.1m, with group operating margins declining by around 40 basis points year-on-year to 15.7pc.
Overall, the group’s total branded volumes increased by 0.3pc, with branded revenues increasing 0.8pc in the 12 month period.
The groups results were in-line with analyst expectations, despite weather disruption across the sector.
"Financial year 2018 was a significant year of progress for the group, both in terms of strategic development as as well as improved underlying performance," Stephen Glancy, CEO of C&C, said.
"While the trading environment in our key markets of the UK and Ireland remained challenging, our branded portfolio returned to volume and revenue growth, outperforming the broader LAD market."
In its results announcement today, C&C said that its Tennents, Magners, and premium and wholesale business in the UK had performed strongly.
In Ireland, competitive pressure, as well as a currency hit of €2.4m, negatively impacted the group’s reported revenue and profit for the year.
Despite the marketing campaign for Bulmers Original under the tag "100pc Irish" increasing brand affinity and brand salience scores for the drink, overall Bulmers brand volumes fell by 6pc year-on-year in Ireland, which the group said reflected reduced draught distribution.
However the group reported a "good year" in the performance of its craft and super premium drinks in Ireland.
During the period C&C returned €78m to shareholders via share buybacks and dividends.
Looking forwards and revenues and profits at the group are anticipated to be more weighted towards the second half of the group’s financial year due to lower anticipated contract manufacturing volumes in the first half.