22nd May 2019 12:25
LONDON (Alliance News) - Irish cider and beer maker C&C Group PLC said Wednesday its annual profit declined on higher costs despite revenue more than doubling, due to a strong contribution from drinks wholesalers Matthew Clark and Bibendum.
C&C reported a pretax profit for the financial year to the end of February at EUR81.8 million, down 4.3% from EUR85.5 million, on total revenue that more than doubled to EUR2.00 billion from EUR813.5 million.
The significant revenue rise was due to a full-year contribution of EUR1.16 billion from Matthew Clark and Bibendum, which C&C acquired from alcohol distributor Conviviality PLC in April 2018 for a nominal sum.
Outside of Matthew Clark and Bibendum, revenue increased in Ireland and Great Britain, growing by 1.2% and 5.0%, respectively.
However, increased operating costs and finance expenses led to the decline in profit.
C&C saw total volume growth for the year at 46%, or 15% on an organic basis, in its super-premium and craft portfolio, now making up 7.9% of branded revenue. C&C said its key Bulmers and Magners cider brands and Tennents beer brand saw revenue growth of 5.5% in their key home markets.
C&C declared a final dividend of 9.98 euro cents per share, leading to a total payout of 15.31 cents, up 5.0% from 14.58 cents the year before.
Looking ahead, C&C said it has made a solid start to its current financial year, and is targeting double-digit growth in its earnings per share for the period.
"2019 was of course an exceptional year for trading and the weather impact is not something we can necessarily hope to repeat. There remains uncertainty ranging from the impact of geo-political events to the, as yet, unclear Brexit process. Any such event could, of course, impact upon the economic environment within our key markets and consumer confidence. This includes currency risk and the ability to trade freely across borders. Naturally, we have taken all necessary steps to plan for the worst while hoping for the most rationale outcome," said Chief Executive Officer Stephen Glancey.
"Set against this backdrop, earnings predictability is a challenge. However, we have continuing momentum across our business. The recovery and performance of Matthew Clark and Bibendum since acquisition is particularly pleasing," Glancey added.
Shares in C&C Group were up 2.3% at EUR3.68 on Wednesday in London.
Related Shares:
C&C Group