28th Feb 2007 07:01
C&C Group Plc28 February 2007 TRADING STATEMENT FOR THE YEAR ENDING 28 FEBRUARY 2007 CCR.I CCR.L Dublin, London, 28 February 2007: C&C Group plc ('C&C' or the 'Group'), aleading manufacturer, marketer and distributor of branded beverages in Irelandand the U.K., today issued the following trading statement for the year ending28 February 2007. Preliminary results, for the year ending 28 February 2007,will be announced on 9 May 2007. Financial Overview Turnover growth from continuing operations(i) in the year ending 28 February2007, compared with the same period in 2006, is expected to be approximately25%. The Group's overall operating margin(ii) is expected to increase byapproximately six percentage points for the full year notwithstandingsignificantly increased marketing investment in the period. This performance reflects continued strong growth in the Cider division,primarily as a result of the excellent performance of Magners in Great Britainand Bulmers' continuing out-performance of the Irish LAD(iii) market. As previously indicated, due to capital expenditure associated with cidercapacity expansion and investment in working capital (including a build-up offresh juice stock) FCF/EBITDA(iv) for 2006/07 will be significantly reduced. Theratio is expected to be close to 30% for the year. Operations Turnover growth in the Cider division for the period is expected to be in excessof 80% arising from volume growth of approximately 5% for the Group's Irishcider brand, Bulmers, and volume growth of approximately 225% for the Group'sinternational cider brand, Magners. In an overall Republic of Ireland LAD market which is estimated to have beenbroadly flat in the period, Bulmers' underlying strength, enhanced byparticularly good summer weather, enabled the brand to outperform the LAD marketsignificantly. The performance of Magners in the period reflects the success of the nationalrollout in Great Britain which commenced in March 2006. Performance in thefirst half of the financial year was enhanced by exceptional summer weather inGreat Britain. The brand continued to be constrained in the second half year byan inability to supply elements of the Great Britain market due to insufficientmanufacturing capacity at critical periods. Shipment volumes in the Spirits & Liqueurs division are expected to show growthof 11% arising from continuing double digit growth for Tullamore Dew and a solidrecovery for Carolans. It is expected that overall depletions growth will beabout 7% in the period. Turnover in the Soft Drinks division is expected to be down by approximately 1%reflecting the loss of the Danone Water brands. Underlying profit performanceshowed solid growth during the period. The Distribution division is expected to show a significant decline in profit asa result of the loss of the former Allied Domecq brands at the start of 2006. Outlook C&C plans to bring increased Cider manufacturing capacity on stream in Spring2007. This increased capacity should enable C&C to capitalise fully on theopportunities for Magners in all trade channels in Great Britain in 2007.Magners growth in Great Britain and further share gains for Bulmers in Irelandis expected to be the main source of Group profit growth in 2007/08. The Group plans to increase its overall level of marketing investmentsignificantly in 2007/08. The increase will embrace Magners in Great Britain andother international markets; Bulmers in Ireland; and Tullamore Dew in a numberof markets. Based on these plans C&C would expect operating profit growth, from continuingoperations, to be in the range of 15%-25% for 2007/08. Maurice Pratt C&C Group CEO concluded "Magners in Great Britain has deliveredtremendous results for C&C in 2006/07. Our primary focus in 2007/08 will be toenhance our market position in Great Britain. In addition, the Group will alsocarry out a structured market test for Magners in two European markets". A restatement of the segmental analysis showing continuing operations for theyear ended 28 February 2006, is attached. 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 institutional investors and analysts at2.30pm (local Irish time) today. Dial in details are available from K CapitalSource on +353 1 631 5500 or c&[email protected] (i) Excluding the Snacks division which was sold in September 2006.(ii) Continuing operations before exceptional items and amortisation(iii) Long Alcohol Drinks(iv) Free Cash Flow/Earnings before interest, tax, depreciation and amortisation (before disposal) 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. The Group's portfolio also comprises some of Ireland's leading beverage brandsincluding Club soft drinks and Ballygowan bottled water. C&C also distributeswithin the Irish market several leading international brands, owned by thirdparties, including 7UP and Pepsi soft drinks and a wide portfolio of wines andspirits. Investors and analysts Irish Media International Media Mark Kenny/Jonathan Neilan Paddy Hughes/ Ann-Marie Curran Edward OrlebarK Capital Source Drury Communications M CommunicationsTel: +353 1 631 5500 Tel: +353 1 260 5000 Tel: +44 207 153 1523Email: c&[email protected] Email: [email protected] Email:[email protected] RESTATEMENT OF SEGMENTAL RESULTS FOR YEAR ENDED 28 FEBRUARY 2006. Continuing Reported Disposals Operations •m •m •mRevenue Cider 278.4 - 278.4 Spirits & Liqueurs 68.8 - 68.8 Soft Drinks 234.9 (47.3) 187.6 Distribution 234.5 - 234.5 816.6 (47.3) 769.3Operating Profit Cider 85.3 85.3 Spirits & Liqueurs 16.3 16.3 Soft Drinks 17.8 (5.1) 12.7 Distribution 5.3 5.3 Profit from continuing 124.7 (5.1) 119.6 operations Operating Profit % Cider 30.6% Spirits & Liqueurs 23.7% Soft Drinks 6.8% Distribution 2.3% 15.5% This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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