DRINKS MANUFACTURER C&C expects to meet full-year profit forecasts despite challenging market conditions, shareholders were told yesterday.

A combination of fine weather in June and the World Cup boosted C&C’s sales through its off-trade distribution channel.

However, conditions in the pub trade remain tough due to the recession and changing consumer trends. Chief executive John Dunsmore told shareholders at yesterday’s agm in Dublin’s Shelbourne Hotel that the company hopes to grow “at least in line” with growth in the market this year. “We’re moving towards that objective and are confident we can achieve it,” he said.

However, Dublin stockbrokers said that the trading update was negatively received by investors, and the stock moved down by more than 3 per cent to just over €3.17.

C&C has had a hectic 12 months in terms of transactions, and the integration of the Scottish lager brand Tennent’s and the Gaymers Cider Company – both acquired in the latter part of 2009 – is now progressing well. The two businesses are delivering on expectations, outgoing chairman Tony O’Brien said.

In June C&C’s spirits and liqueurs division was sold for €300 million to William Grant Sons. Mr Dunsmore told shareholders that the net effect of these three transactions was a cash inflow of €25 million, leaving the company in a very strong position financially.

Strategy director Kenny Neison said the company does not anticipate any further acquisitions in the next 12 months, as it has “enough on its plate”. However, the business is adequately structured to take advantage of any opportunities that make sense, he added.

“While the group remains cautious on the macro-economic outlook for both Ireland and Great Britain, we are confident in the progress being made in the development of our brand strengths and trading strategies,” Mr O’Brien said.

Mr O’Brien retired as chairman at the meeting, after 30 years of involvement with C&C, and is succeeded by Sir Brian Stewart.