31st Aug 2005 07:00
C&C Group Plc31 August 2005 PRE-CLOSE TRADING STATEMENT FOR THE SIX MONTHS ENDING 31 AUGUST, 2005 CCR.I CCR.L Dublin, London, August 31, 2005: C&C Group plc ('C&C' or the 'Group'), a leadingmanufacturer, marketer and distributor of branded beverages and snacks inIreland, today issued the following statement in advance of its close period forthe 6 months to 31 August, 2005. Interim results, for the six months ending 31August, 2005, will be announced on 11 October, 2005. Financial Overview Turnover growth, for the first half to August 31, 2005, compared to the sameperiod in 2004, will be approximately 8%. The overall operating margin (beforeIFRS adjustments and exceptional items) should be broadly unchanged despitesignificantly increased marketing investment. The Group will also benefit fromreduced interest charges in the period. This performance is ahead of the Group's expectations and reflects the netimpact of strong growth in the Cider division and a reduced contribution fromthe Soft Drinks & Snacks division. Operations Turnover growth in the Cider division in the period will be over 25% arisingfrom sales volume growth of c.8% for the Group's Irish cider brand, Bulmers, andvolume growth of c.100% for the Group's international cider brand, Magners. Ina Republic of Ireland LAD market which is estimated to have grown by 1-2%,Bulmers benefited from good summer weather particularly compared to last year.Magners' growth is coming primarily from Great Britain where it is enjoying asuccessful rollout in the greater London area and where Scotland continues toshow strong momentum. International Spirits & Liqueurs' shipment volume growth will be c.2% withcontinued strong growth from Tullamore Dew offset by weakness in Carolans CreamLiqueur. C&C is in discussions with a number of alternative internationalspirits & liqueurs distributors to replace Allied Domecq and expects to concludeits new arrangements in October/November, 2005. Trading conditions in the Soft Drinks & Snacks division have been difficultwithin the period; the market being characterised by volume declines incarbonated soft drinks and snacks and margin pressure in a growing bottled watermarket. C&C experienced some market share loss and half year turnover for thedivision is expected to be unchanged. Increased marketing investment, to supportgrowing segments of the market, will contribute to a reduction in the operatingmargin. Second Half Outlook C&C expects the strong underlying (i.e. weather adjusted) market performance ofits Cider division to continue into the second half of the year. TheInternational Spirits & Liqueur division could experience some temporaryperformance shortfall in the second half as a result of impending distributionchanges. The market trends in the Soft Drinks & Snacks division are expected tocontinue in the second half of the year. As a consequence, the Group now expects moderate EPS growth for the full year(pre IFRS and exceptionals). Accounting Changes The company is adopting IFRS in the current financial year. The impact of thiswill be to reduce reported EBITA for the first half by approximately €1.5million. €1.0 million of this reduction relates to pensions and €0.5 millionrelates to expensing share options. Reported earnings will also be affected bythe elimination of the P&L charge for goodwill amortisation. These changes haveno impact on cash and accordingly will not impact dividends. 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 2.00pm (localIrish time) today. Dial in details are available from K Capital Source on +353 1631 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 Volvic and Evian bottled water, and a wide-rangingportfolio of wines and spirits. In addition to its Irish operations, the Groupexports spirits and liqueurs to over 80 overseas markets and exports Magnerscider to the United Kingdom, the United States and Continental Europe. Investors and analysts Irish Media International Media Mark Kenny/Jonathan Neilan Paddy Hughes/ Ann-Marie Curran Edward Orlebar K Capital Source Drury Communications Finsbury Group Tel: +353 1 631 5500 Tel: +353 1 260 5000 Tel: +44 20 7251 3801 Email: Email: [email protected] Email:c&[email protected] [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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