31st Aug 2007 07:00
C&C Group Plc31 August 2007 TRADING STATEMENTFOR THE SIX MONTHS ENDING 31 AUGUST 2007 CCR.I CCR.L Dublin, London, 31 August, 2007: C&C Group plc ('C&C' or the 'Group'), a leadingmanufacturer, marketer and distributor of branded beverages in Ireland and theU.K., today issued the following trading statement for the six months ending 31August 2007. Interim results, for the six months ended 31 August 2007, will beannounced on 10 October 2007. Financial Overview Turnover(i), for the six months to 31 August 2007, is expected to be flatcompared with the same period in 2006, while operating margin(i) is expected todecline by approximately nine percentage points for the same period. This performance reflects the combination of weak demand and substantiallyincreased marketing and manufacturing costs within the cider division and isconsistent with the guidance given in the statement issued on 31 July 2007. Operations Turnover in the Cider division is expected to be approximately 1% ahead of thesame period last year with sales volumes down approximately 2%. The volumedecline reflects the extremely poor weather in Ireland and Great Britain and theimpact of competition in Great Britain. Bulmers cider volumes in the Republic of Ireland are expected to decline byapproximately 7% in the half year, while shipments of Magners to Great Britainare expected to be 2% higher than last year. Spirits & Liqueurs shipments are expected to increase by 8% over the same periodlast year. This primarily reflects continued double digit growth for TullamoreDew Irish Whiskey. Overall depletions growth is estimated to be in mid singledigits. Disposal The sale of the Soft Drinks division and related assets was completed on 29August 2007. The operating profit contribution to the Group from these assets inthe period is expected to be approximately €6 million - this represents adecline on the previous year due mainly to the very poor summer weather. Share Buyback C&C suspended its on-market share buyback programme on 31 July 2007 and intendsto recommence this programme, utilising part of the proceeds of the Soft Drinksdivision disposal, following the announcement of its interim results in October. Second Half Outlook C&C will provide guidance on its expectations for the second half and full yearwhen it announces its interim results on 10 October 2007. Restatement A restatement of segmental results for the six months ended 31 August 2006showing the contribution from continuing operations and disposals is attached. (i) Continuing operations - before exceptional items and excluding theSnacks and Soft drinks divisions. Investors and analysts Irish Media International Media Mark Kenny/Jonathan Neilan Paddy Hughes/ Ann-Marie Curran Edward OrlebarK Capital Source Drury Communications M Communications Tel: +353 1 631 5500 Tel: +353 1 260 5000 Tel: +44 207 153 1523Email: c&[email protected] Email: [email protected] Email: [email protected] About C&C Group plc C&C Group plc is a leading manufacturer, marketer and distributor of brandedbeverages in Ireland and the UK. C&C manufactures the leading Irish cider brand,Bulmers, and the premium international cider brand, Magners, for export to theUnited Kingdom, the United States and Continental Europe. C&C also exportsspirits and liqueurs, including the premium Irish whiskey brand, Tullamore Dew,to over 80 international markets. RESTATEMENT OF SEGMENTAL RESULTSFOR SIX MONTHS ENDED 31 AUGUST 2006. Continuing Reported Discontinued Operations •m Operations* •m •mRevenue Cider 269.5 - 269.5 Spirits & Liqueurs 36.1 36.1 Soft Drinks & Snacks 125.3 (125.3) - Distribution 101.2 (30.2) 71.0 532.10 (155.5) 376.6 Operating Profit Cider 90.0 90.0 Spirits & Liqueurs 9.8 9.8 Soft Drinks & Snacks 13.5 (13.5) - Distribution 0.2 0.7 0.9 Profit for continuing operations 113.5 (12.8) 100.7 Operating Profit % Cider 33.4 Spirits & Liqueurs 27.1 Distribution 1.3 26.7 *Soft Drinks division and related assets/Snacks division This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
C&C Group