Tuesday 24 April 2018

C&C Group revenue falls 3pc as poor weather hits profits

Michael Cogley

Michael Cogley

Revenue at Bulmers-maker C&C group dropped by 3.1pc to €662.6m last year as profits at the firm fell by 10.3pc to €103m.

In the 12 months to February 29 the company increased its spend on marketing by 5.5pc to €34.6m.

Despite the hit in earnings the firm is recommending increasing its final dividend paid out to shareholders by 27.4pc to 8.92c per share. The increase would represent full year dividend growth of 18.7pc.

C&C chief executive Stephen Glancey said the business faced challenges in its home markets.

"In our domestic businesses in Ireland and Scotland we faced a range of challenges including poor weather, increased competitor dynamics and of course the impact in Scotland of the changes to drink driving regulations.

"ntegration of Gleeson's and Wallace's is now complete and we have a stronger customer focused platform which provides us with a competitive advantage as we build on the relative strengths of our local heroes, Bulmers and Tennent’s," Mr Glancey said.

In the UK C&C's Magners growth is back in both volume and market share. The company said Magners in draught experienced year on year growth in the second half of its financial year.

"In the wider UK market, Magners Original has delivered both volume and share growth. We have a new marketing campaign this summer and this upweighted investment will support growth. The C&C brands business has also developed a number of speciality beers and ciders.

"Volume of Menabrea our Italian beer more than trebled and Heverlee, our Belgium Pilsner, grew by 34pc," Mr Glancey said.

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