16th Jan 2008 07:00
C&C Group Plc16 January 2008 Interim Management Statement for the six months ending 29 February, 2008 Dublin, London, 16 January, 2008: C&C Group plc ('C&C' or the 'Group'), aleading manufacturer, marketer and distributor of branded beverages in Irelandand the UK, today issued the following Interim Management Statement for the sixmonths ending 29 February 2008. Quarter to 30 November 2007 Revenue Revenue(i) for the quarter to 30 November, 2007 declined by 15% compared withthe same period last year. This performance reflects a decline of 18% for C&C'sCider division and growth of 1% for Spirits & Liqueurs. The year-on-year decline in the Cider division's revenue for the third quarteris in line with the performance in the quarter to 31 August 2007 and comprises a30% decline in Great Britain and 2% growth in the Republic of Ireland. The performance in Great Britain primarily reflects the impact of a loss ofon-trade market share during the period to 31 August, the negative carry-overimpact of poor summer weather on recruitment to the premium cider category, anda very weak overall on-trade market. The performance of Bulmers in Ireland represents a strong recovery from thequarter to 31 August which was impacted by the poor summer weather. Thisperformance reflects the established nature of the Bulmers brand in Irelandcompared to Magners in Great Britain. Margins Group operating margin(i) for the quarter was one percentage point lower than inthe half year to 31 August, 2007 with Cider division margin unchanged. Other Implementation of the Group's re-organisation and cost reduction programme,announced on 15 November, 2007, is progressing in line with expectations. TheGroup continues to take a series of measures to sharpen its competitive responsein Great Britain and expects to make an announcement on the appointment to thepost of Managing Director - Magners GB in the coming weeks. The benefit of thesemeasures will be felt in 2008/9. Trading since 30 November 2007 Trading over the Christmas period followed the pattern in the quarterto 30 November, 2007- a solid performance in Ireland and a weak performance inGreat Britain. Accordingly the Group expects overall revenue(i) for the year to 29 February2008 to decline by approximately ten percent compared to the 2006/7 fiscal yearand operating profit margin(i) to be down by approximately ten percentagepoints. Including income from discontinued operations and from non-recurring foreignexchange gains, this operating performance is expected to result in an earningsper share(ii) outcome for the 2007/8 full year at the lower end of the range ofcurrent market expectations. Share Buyback The Group intends to commence an on-market share buyback programme shortly. 2008 Reporting Calendar The Group will issue a 2007/8 full year trading update on 29 February2008 and host a conference call for analysts and institutional investors on thatdate. C&C will report 2007/8 full year results on 8 May 2008. (i) Continuing operations - before exceptional items and at constant currency. (ii) Before exceptional items. Investors and analysts Irish Media International Media Mark Kenny or Jonathan Neilan Paddy Hughes Edward Orlebar or Charlotte KirkhamK Capital Source Drury Communications M Communications Tel: +353 1 631 5500 Tel: +353 1 260 5000 Tel: +44 207 153 1523/1531Email :c&[email protected] Email: [email protected] Email: [email protected] [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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