24th Oct 2019 10:15
(Alliance News) - C&C Group PLC on Thursday reported a rise in interim profit, in line with expectations, saying its trading was "stable".
In the six months to August 31, the Irish cider and beer maker's pretax profit grew 1.3% to EUR56.6 million from EUR55.9 million the year before.
C&C's net revenue increased 14% to EUR874.9 million from EUR770.6 million.
C&C - which makes, amongst other alcoholic and soft drinks, Bulmers and Magners cider and Scottish beer Tennent's - declared an interim dividend of 5.50 euro cents, 3.2% higher than a year before.
"We are pleased with the progress of the business over the first half of the financial year with revenue growth and operating profits ahead by 9.2%," said Chief Executive Stephen Glancey.
Glancey added: "Last year was exceptional with a World Cup and a hot summer boosting demand. Despite challenging year-on-year comparatives we have delivered a resilient revenue performance in our core brands."
In Great Britain, operating profit rose 5.6% to EUR24.7 million. The combined beer and cider markets there fell by 3.5%, driven by challenging previous year comparators, C&C said.
Total cider volumes reduced 9.2%, with off-trade cider down 12% and the on-trade down 3.7%. In Scotland, beer volumes declined by 4.6% with price-to-mix inflation of 5.3% driven by the introduction minimum unit pricing by the Scottish government.
In Ireland, operating profit slipped 1.1% to EUR25.8 million. Long alcoholic drink volumes were down 3.8% in the period.
"Competition remains intense with significant new product launches by major international brewers across beer and cider. Despite this increased competition, our volume share of total cider held firm at 65% over the period," C&C said.
Glancey continued: "Despite the economic uncertainties linked to macro and political issues, current trading is in line with expectations. Accordingly, we remain on track to deliver double digit earnings per share growth in financial 2020 and on our steady state forward earnings targets.
"We have significant balance sheet strength to support our targeted growth range. C&C is committed to effective capital allocation and progressive capital returns."
Shares in C&C Group were 2.8% higher in London on Thursday at 372.50 pence each.
By Paul McGowan; [email protected]
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