28th Oct 2015 08:55
LONDON (Alliance News) - C&C Group PLC Wednesday reported a fall in profit in the first half of its financial year due to difficulties in its core markets, which it said will also hit full-year profit.
The Irish drinks company, whose brands include Bulmers, Magners and Gaymers ciders, said pretax profit in the six months ended August 31 fell to EUR52.7 million from EUR60.3 million the year before, as revenue declined 2.6% to EUR358.6 million from EUR368.1 million.
It said its results reflected a challenging period in its core markets of Ireland and Scotland due to poor weather, the transition to a brand-led wholesale model, and tightening of drink-driving legislation. These factors will hit full-year profit by about EUR10 million.
C&C will pay an interim dividend of 4.73 cents, a 5.1% rise on the prior year.
"Looking ahead, we expect improved operational performance in Ireland and Scotland as we move through the second half and into financial 2017 underpinned by ongoing cost-saving initiatives, sustained investment behind our brands and increased emphasis on niche and premium," Chief Executive Stephen Glancey said in a statement.
"We are assuming that market conditions will continue to be testing particularly in our core markets in the coming months but we are confident that we are taking the right actions to build durable, long-term value for all shareholders and this is reflected in a 5.1% increase in our interim dividend," he added.
Shares in C&C were down 0.1% to EUR3.715 on Wednesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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