29th Oct 2014 09:07
LONDON (Alliance News) - C&C Group PLC shares were down in early trade on Wednesday after the Irish drinks company said its pretax profit for the first half fell despite higher revenue, as the group was hit by rises in excise duties and a jump in operating costs.
Pretax profit for the maker of cider brands including Bulmers and Magners was down to EUR64.3 million from EUR66 million a year earlier in the half year to August 31.
The fall came despite a rise in revenue in the period to EUR528 million from EUR486.4 million last year, as excise duties increased to EUR159.9 million from EUR149.7 million and operating costs jumped to EUR289.9 million from EUR265.6 million last year.
C&C did not define the reason for the jump in operating costs in the period, but it did complete the integration of Irish drinks distributor Gleeson Group in the period and the integration of the Wallaces Express business in Scotland. The two acquisitions resulted in exceptional costs of EUR1.2 million in the half year.
The group proposed an interim dividend of 4.5 cents per share, up 4.7% on the year before.
The group said its performance in the period was solid against tough comparatives for its Irish business, the early stage of its marketing programme in the US, and a competitive trading environment in England and Wales.
Post the period end, the group confirmed it has entered the bidding battle for Spirit Pub Co PLC, competing against FTSE 250 listed pub company Greene King PLC.
Commenting on its interest in Spirit, C&C Chief Executive Stephen Glancey said the company's route-to-market strength in Ireland and Scotland is not matched in England and Wales, adding the board of C&C believes its "commercial interests could be materially enhanced through direct participation in the management of high-quality retail assets".
C&C shares were down 8.3% to EUR3.41 on Wednesday, making it one of the worst performer on the London market.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
C&C Group