C&C predicts €110m profit for 2011 as cider sales rise

DRINKS MAKER C&C said it expects its full-year operating profit will be €110 million, within the range of its previous guidance.

The group said it had seen an improvement in trading in Ireland and the UK during the Christmas period with volumes of its cider brands Bulmers and Magners up by 1 per cent on the same period a year earlier.

In an interim management statement issued yesterday, C&C said Magners performed particularly well in the UK in the three months to the end of November last with a 5.8 per cent increase in volume and a 7.8 per cent increase in net revenue. Exports of Magners outside of Ireland and the UK also rose with a 31.9 per cent increase in volume in the third quarter.

Magners export volumes accounted for 14.6 per cent of total Magners sold in the nine months to November 30th. Bulmers net revenue remains under pressure from a weak on-trade and an increase in promotional pricing in the Irish off-trade, the group said.

In the third quarter, cider volumes in Ireland fell by 4.6 per cent, while cider net revenues declined by 12.3 per cent.

Beer volumes in Ireland rose by 23 per cent in the third quarter, while beer net revenues increased 11.3 per cent.

Despite the challenging top line in cider, earnings contribution from the Irish business in this financial year are expected to be broadly in line with last year.

C&C also announced the appointment of Joris Brams to the newly created position of managing director of its international division.

Mr Brams, a Belgian national, joins C&C from Puratos Group, a privately owned Belgian company which supplies products and services to the bakery, patisserie and chocolate sectors in more than 100 countries with over 5,500 employees.

Mr Brams previously worked at Scottish Newcastle brewers.