27th Feb 2006 07:00
C&C Group Plc27 February 2006 PRE-CLOSE TRADING STATEMENT FOR THE YEAR ENDING 28 FEBRUARY 2006 CCR.I CCR.L Dublin, London, February 27, 2006: C&C Group plc ('C&C' or the 'Group'), aleading manufacturer, marketer and distributor of branded beverages and snacksin Ireland, today issued the following statement in advance of its close periodfor the year to 28 February, 2006. Preliminary results, for the year ending 28February, 2006, will be announced on 9 May, 2006. Financial Overview Turnover growth, for the year to February 28, 2006, compared with the sameperiod in 2005, will be approximately 9%. The full year operating margin (beforeexceptional items) should be broadly unchanged despite significantly increasedmarketing investment. The Group will also benefit from reduced interest chargesin 2005/6. This financial performance primarily reflects the net impact of continued stronggrowth in the Cider division and a significantly reduced contribution from theSoft Drinks & Snacks division. The result is expected to be an EPS outcome inline with current market expectations. Operations Turnover growth in the Cider division, for 2005/6, will be approximately 30%.This reflects volume growth of c.6% for the Group's Irish cider brand, Bulmers,and volume growth of c.125% for the Group's international cider brand, Magners.Bulmers continued to significantly outperform the Republic of Ireland LAD marketwhich is estimated to have been broadly flat in the 12 months to February 2006.This performance reflects a combination of market share improvement throughoutthe year and good summer weather during 2005. Magners' growth came primarilyfrom Great Britain where it is enjoying a successful roll-out in the greaterLondon area and very strong growth in Scotland. International Spirits & Liqueurs' shipment volumes are expected to decreaseslightly with continued strong growth from Tullamore Dew offset by weakness inCarolans Irish Cream Liqueur. The change to new distributors to replace AlliedDomecq is progressing smoothly with no evident market disruption. Trading conditions in the Soft Drinks & Snacks division have remained difficultthroughout the 2005/6 fiscal year. C&C's performance deteriorated during thesecond half of 2005/6 as margins in the grocery channel contracted, and the fullyear outcome will show a material drop in operating margins. The Group is takingsteps to address the performance of its Soft Drinks business. Outlook C&C plans to extend the distribution of Magners to the principal centres ofpopulation in England and Wales in 2006/7 and to support this roll-out with anational media campaign. The successful implementation of this plan andcontinued share growth in existing markets for the Group's cider businessunderpins the Group's expectation of continued operating profit growth in 2006/7. The timing and scale of the marketing investment involved in the Magnersroll-out, however, will limit profit growth in the six months ending August2006. C&C's other divisions, in aggregate, should show modest organic operating profitgrowth in 2006/7. This however will be outweighed by the effect of thepreviously announced loss of the distribution of Volvic and Evian and theAllied Domecq brands. Maurice Pratt, C&C Group CEO, concluded: "Our strategy is to exploit the growthopportunities presented by Magners, Bulmers and Tullamore Dew and this willdrive increased operating profit for the Group as a whole. We are also focusedon improving the performance of the Group's non-alcohol businesses". Pre-close Trading Statement - Investor and Analyst Conference Call Details Maurice Pratt, Group Chief Executive Officer and Brendan Dwan, Group FinanceDirector will host a conference call for investors and analysts at 2.30p.m.(local Irish time) today. Dial-in details are available from K Capital Sourceon +353 1 631 5500 or c&[email protected] About C&C Group plc C&C is one of the largest manufacturers, marketers and distributors of brandedbeverages in Ireland and Northern Ireland and savoury snacks in Ireland. TheGroup owns several of Ireland's most recognised beverage and savoury snacksbrands, with leading market shares in various segments of the Irish beverage andsavoury snacks markets, including Bulmers cider, Ballygowan bottled water, Clubsoft drinks and Tayto crisps. Additionally, the Group distributes in Irelandseveral leading international brands owned by third parties, such as 7UP andPepsi soft drinks, and a wide-ranging portfolio of wines. In addition to itsIrish operations, the Group exports spirits and liqueurs to over 80 overseasmarkets and exports Magners cider to the United Kingdom, the United States andContinental Europe. Investors and analysts Irish Media International Media Mark Kenny/Jonathan Neilan Paddy Hughes/ Ann-Marie Curran Edward OrlebarK Capital Source Drury Communications Finsbury Group Tel: +353 1 631 5500 Tel: +353 1 260 5000 Tel: +44 20 7251 3801Email: c&[email protected] Email: [email protected] Email: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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