20th May 2014 12:17
LONDON (Alliance News) - Shares in alcoholic beverage manufacturer C&C Group PLC rose Tuesday, after it reported higher annual pretax profit and revenues, and raised its dividend by 14%.
C&C shares were up 7.5% at EUR4.42 Tuesday afternoon.
The Irish and UK based manufacturer and distributor of cider, beer, wine and soft drinks, including the ciders Magners and Bulmers, recorded a pretax profit of EUR116.2 million for its financial year ended February 28, up from EUR109.7 million the prior year, driven by recent acquisitions and a strong performance in Ireland and Scotland.
Revenues for the year rose 30% at actual exchange rates, and 34% on a constant currency basis, to EUR620.2 million from EUR476.9 million a year earlier, boosted by the acquisition of Vermont Hard Cider Co in the US and Irish wholesaling business Gleeson last year, as well as investments made in Wallaces Express.
C&C said that in the Republic of Ireland, its cider brands improved market shares and grew volume and revenues for the first time in seven years.
The group said it is well placed to benefit from improving macro conditions in the UK and Ireland, but remains cautious that in the UK, the broader cider market remains competitive and commoditised.
"In Scotland and Northern Ireland, Tennent?s and our portfolio of brands continued to deliver growth in the Independent Free Trade, achieving impressive market share, revenue growth and volume gains," the company said in a statement.
"Cider UK performance stabilised in the second half of the year. The cider category has commoditised and focus remains on developing and maintaining profitable positions in a competitive market," it added.
C&C said its international business as a whole continues to develop, and said it remains confident in the prospects for its portfolio of authentic cider brands in the US market.
"In the US, the combined impact of integration, increased competition and distributor consolidation materially impacted our performance. While we have re-based our own short term expectations of growth, the market remains both attractive and dynamic," said Group Chief Executive Stephen Glancey in a statement.
During the year, the group made just over EUR80 million in capital expenditure. It said its balance sheet remains strong.
The group raised its full year dividend by 14% to EUR10.0 cents.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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