2nd Jul 2015 06:44
LONDON (Alliance News) - C&C Group PLC Thursday said it experienced mixed, weaker-than-expected trading conditions in the first quarter of its financial year, but said it expects improvements as the year progresses.
The drinks company, whose brands incude Bulmers, Magners and Gaymers ciders, said that its core markets of Ireland and Scotland were hit by unseasonably cold and wet weather in the three months to May 31, and it was also hit by the recent tightening of drink-driving regulations in Scotland.
However, the company said that its business in England and Wales, C&C Brands, had a positive first quarter, trading in line with expectations, while first-quarter shipments were up year-on-year in the US, albeit against a soft comparative. Its recently-launched Gumption cider brand performed strongly with distribution and rate of sale ahead of plan, it said.
C&C added that it performed solidly in Asia, Australia and Europe, with new market opportunities in Africa and Eastern Europe in various stages of development.
Free cash flow as a percentage of earnings before interest, tax, depreciation and amortisation should be within the 60% to 70% range for the full year, it said.
"Following weaker than expected trading conditions in the first quarter, we anticipate a gradual improvement in core market performance as the year progresses. In the US and other Export markets, a return to growth is the target. For C&C Brands, the objective for the financial year is earnings and volume stabilisation," C&C said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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