Drinks manufacturer C&C expect results to improve
By Maurice Garvey
INTERNATIONAL drinks manufacturer C&C Group saw revenue in Ireland negatively impacted over the last year, by reduced volumes in their wholesale business and “reversion of certain customers” to direct supply from Belgian brewing company AB InBev.
The Irish drinks giant, headquartered at Bulmers House in Crumlin, recently released results of their trading period for the 12 months to the end of February 2018.
Despite the “highly competitive” Irish trading environment, the firm anticipate overall operating profits to be around €86 million for the 12-month trading period.
They reported strong revenue growth in performance of the firm’s Scottish businesses, Tennent’s and their super-premium brands.
Admiral Taverns – a chain of UK pubs C&C acquired in 2017 alongside a US investment fund – is expected to contribute an additional €1.1 million to group earnings.
Magners cider returned to volume growth with momentum building through the first year of C&C’s distribution partnership with AB InDev.
During the year, C&C made a €42 million investment in the UK through Admiral Taverns and invested a further €12 million on their craft brand portfolio.
In addition, the firm returned €73 million to shareholders through a combination of share buy-back and dividends.
Currency translation of €3 million and one-off impacts relating to the new AB InBev arrangements negatively impacted full year profitability.
The manufacturer and distributor of branded cider, beer, wine and soft drinks, say their Scottish market is well placed to deliver further growth in the year ahead, despite the “short term” impact of the introduction of minimum unit pricing of alcohol in Scotland this year.
In the UK, C&C have strengthened route-to-market platforms of Admiral Taverns and AB InBev are now well-embedded.
The outlook for the UK high street and consumer spending remains “challenging” but their brands and “predominantly wet-led, community pubs” are proving “resilient.”
While competitive pressures remain in Ireland, C&C expect performance to improve next year.
