30th Oct 2013 10:10
LONDON (Alliance News) - C&C Group PLC, the owner of the Magners and Bulmers cider brands, Wednesday said that profits rose in the first half of the year, before exceptional costs, as sales picked up in the second quarter,.
The cider and beer maker increased its interim dividend by 7.5% to 4.3 cents per share, and reaffirmed its full year earnings growth of between 10% and 16%, saying that it still expects an operating profit of between EUR125 million and EUR132 million for the year.
C&C reported a first-half pretax profit of EUR66.0 million before exceptional costs, up from EUR64 million a year earlier.
It said that before exceptional items its net profit rose to EUR56.0 million, from GBP54.5 million a year earlier. However including exceptional items it fell to EUR42 million from 54.4 million the prior year.
C&C said it incurred GBP14 million in one-off costs during the period, including restructuring and acquisition costs associated with its US cider business, and expenses associated with the move of a bottling process from its Clonmel plant in Ireland to its Shepton Mallet plant in Somerset.
The group reported higher revenues in the six months to August 31, up 23% to EUR486.4 million, from EUR397.0 million in revenues in the same period a year earlier. It reported net revenue growth of 28% to EUR336.7 million.
"Following a weak first quarter, the group recorded an improved performance in each of our domestic markets in the second quarter aided by warmer summer weather. While we continue to focus on operating efficiency, operating expenses in the period include significant investment in future areas of growth including Shepton Mallet Cider Mill and our US cider business," said Chief Executive Officer Stephen Glancey in a statement.
C&C said that trading in domestic markets in the second quarter improved, with volume and revenue growth in the Republic of Ireland boosted by its Bulmers brand, and improved volume performance for cider in the UK, buoyed by its Magners brand.
It also said that its Tennent's business is performing well, as it expanded its brand portfolio and saw a strong performance for its Caledonia Best smooth ale.
C&C shares were up 2.6% Wednesday morning, trading at 4.11 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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