Bulmers maker expects profit of €86m for 12 months to February 2018
Bulmers maker C&C expects to report profit of €86m for the 12 months to 28 February 2018.
Admiral Taverns, which the group acquired 47pc of last September, is expected to contribute an additional €1.1m to C&Cs earnings, the company said in a trading update today. The Admiral deal gives C&C a greater direct-to-market platform in the key English market which it has struggled to crack.
Last year operating profit at the group was €95m.
In addition the company said that, despite weather-related disruption, trading and cash generation was broadly in line with management expectations.
Cash conversion is expected to be within the company’s guidance range at around 60pc of earnings before interest, taxation, depreciation, and amortisation.
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In Scotland, the group said that its Tennent’s and super-premium brands grew revenues strongly, while its Magners brand (Bulmers in Ireland) returned to volume growth with momentum building through the first year of the company’s cider distribution partnership with AB InBev.
The trading environment in the Irish market remained "highly competitive" the company said, both within long alcoholic drinks and from other categories, with the overall cider category declining 1pc, while bulmers brand volumes were down 6pc during the 12 month period.
"As highlighted in our first half results, revenues and profitability in Ireland were also negatively impacted by reduced volumes in our wholesale business and the reversion of certain customers to direct supply from AB InBev," C&C said.
The group’s exports expect to experience volume growth of around 2pc for the company’s financial year 2018, with good growth in Magners and Tennent’s in Asia Pacific off-set by slower growth in cider in Europe.
Looking forwards, the company said that the performance of its Scottish businesses and its growing super-premium portfolio has been encouraging last year, and both are well positioned to deliver further value growth in FY2019, the company said.
While C&C expects competitive pressures to continue in Ireland, it expects its Irish performance to improve next year.
Meanwhile in the UK, C&C said that the outlook for the UK high street and consumer spending remains "challenging" but that its brands and the predominantly wet-led, community pubs that it serves are proving to be resilient.