Severe weather hits C&C full-year revenue, profits

Revenue and profit at drinks firm C&C fell in the year to the end of February, as severe weather hit results in the second half.

Overall net revenue was almost 5 per cent lower at €548.2 million, with operating profit down 7 per cent to €86.1 million. The company said adjusted earnings per share was 22 cent.

In Ireland, strong comparatives buoyed by the European Championships and better weather put the results on the back foot, although total branded sales in Ireland and Great Britain increased modestly over the period. Revenue fell more than 4 per cent to €312.1 million, while profit was down almost 7 per cent to €40.1 million.

The company aso noted the competitive pressure in Ireland negatively impacted its reported revenue, along with the one-off impact from revisions to the AB InBev distribution agreements, which resulted in the loss of a number of wholesaler accounts in Ireland. These accounts had contributed almost €15 million in revenue and €5 million in profit in the previous period.

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Although the Bulmers brand family share in on-trade packaged was robust, overall brand volumes fell by 6 per cent as draught distribution was reduced.

However, the company said it increased C&C’s share of off-trade cider to 57 per cent and had a good year with its craft and super premium brands, with Dublin craft brewery Five Lamps doubling volumes.

In Britain, C&C saw a strong performance from Tennent’s, Magners, premium and wholesale businesses.

Its international volumes rose 2 per cent, as distribution increased. The US saw volumes decline, although there were signs of stabilisation in the sector, C&C said. Following the period under review, C&C took over responsibility for its US brands, some of which had been managed through Pabst.

C&C group chief executive Stephen Glancey said fiscal year 2018 was "a significant year of progress" for the group.

“ While the trading environment in our key markets of the UK and Ireland remained challenging, our branded portfolio returned to volume and revenue growth,” he said.

In its Scottish businesses, Tennent’s was the driving force behind share growth, with revenues up 5 per cent.

After the year-end, C&C bought Matthew Clark Bibendum out of the administration of Conviviality. “A strategically important acquisition for C&C, this greatly enhances our route-to-market in the UK on-trade,” Mr Glancy said. “Significant progress has already been made in stabilising the business.”

The C&C chief said trading in March and April was in line with expectations, and the company was confident in its outlook.