Cider slide slams C&C profits
Full year revenue fell 8.1% at Magners cider group C&C Group to €679m , reflecting weak market conditions linked to low consumer confidence and poor weather.
The firm, which sold its soft drinks business to Britvic last year for €246.6m, also reported a 37.3% slide in operating profit before exceptional items for the year ended 29 February to €125.2m.
Cider sales volumes dropped 11%, blamed on the loss of market share by Magners in Great Britain, poor summer weather and a hike in operating costs and marketing investment.
It hopes a big advertising campaign and increased trade marketing investment will help revive Magners sales volumes and expects modest overall revenue growth and some improvement in operating margins for the full year.
(Article continues below)Advertisement
"In 2008/09 we expect to stabilise the group's financial and market performance, and, to deliver growth through the benefits of a streamlined organisation; cost reduction programme; and a series of marketing initiatives," said boss Maurice Pratt.
"On the basis of normal summer weather, the group expects the premium cider category in Great Britain to return to growth in 2008," the firm added
The final dividend of 15 cents per share makes a total of 27 cents for the year, the same as last year.
