FDBusiness.com

C&C Group Impacted By Currency Headwinds and Accelerated Investment

 Breaking News
  • Müller Completes Largest Single Investment in Scottish Dairy Processing in a Decade Müller Milk & Ingredients has completed a £15 million project to substantially upgrade Scotland’s largest fresh milk dairy in Bellshill and secure 265 jobs. The project represents the largest single investment in Scottish dairy processing for more than a decade. It gives Müller’s Bellshill dairy the capacity to process more than 370 million litres of fresh [...]...
  • Changing Consumer Habits to Shape EU Agricultural Markets by 2030 The European Commission has published projections for the European agricultural markets to 2030 for a wide range of agri-food products, including meat, arable crops, milk and dairy products, and fruit and vegetables. The evolution of agricultural income and the environmental aspects of EU agriculture are also covered, as well as a special focus on the [...]...
  • Irish Grass-fed Beef – Opportunities For Healthier Diets Ireland’s climate means that the country is good at growing grass. It is well known that producing beef from grass results in lower costs than feeding animals on concentrates. But what about the consumer? Is grass-fed beef better than other types of beef for consumers? This was the focus of a Department of Agriculture, Food and [...]...
  • Change of Leadership at Edrington Edrington, the international premium spirits company, has announced that chief executive officer Ian Curle will retire in March 2019 after 15 years in that role. His successor will be Scott McCroskie, who is currently a member of the Edrington board and managing director of The Macallan. Ian Curle joined the business in 1986 through Edrington’s subsidiary [...]...
  • Guinness to Sponsor Six Nations Rugby The iconic global brand Guinness is to become the new title sponsor of the Six Nations, with the Championship to be known as the Guinness Six Nations from 2019. The Six Nations is one of the world’s best attended sports events and regularly attracts record TV and online audiences in the UK, France, Ireland, Italy [...]...

C&C Group Impacted By Currency Headwinds and Accelerated Investment

C&C Group Impacted By Currency Headwinds and Accelerated Investment
October 28
10:27 2016

Currency headwinds and investment in marketing and price support have impacted the first half performance of C&C Group, the Irish and UK beer and cider producer. Net revenue at constant currency declined by 8.1% to €307.0 million in the first six months ended 31 August 2016. However, net revenue in C&C Group’s domestic markets for its combined Bulmers cider, Tennent’s lager and Magners cider brands declined by only 0.8% in the first half.

Reported operating profit before exceptional items fell by 7.9% to €55.1 million, although incremental investment in marketing (+€3.6 million in core brands) and price support were significant factors. Operating profits in Ireland stabilised following a challenging time in C&C Group’s last financial year.

The fall in the value of sterling particularly following the Brexit vote undermined reported first half revenues and operating profits by €24.4 million and €2.8 million, respectively.

Stephen Glancey, chief executive of C&C Group.

Stephen Glancey, chief executive of C&C Group.

Stephen Glancey, chief executive of C&C Group, comments: “In the first half Bulmers grew by 6%, Tennent’s by 2% and Magners by 11% supported by increased brand investment and organisational focus. It is also pleasing to note continued growth in export with Tennent’s volumes particularly strong up 50% in the period. While reported earnings have been impacted by a combination of accelerated investment and currency we believe that this level of investment ultimately underpins long term brand values.”

C&C Group’s consolidation and efficiency programme is going to plan. As part of the operational consolidation the group invested €9 million in a new PET bottling line at Clonmel in Ireland during the first half and sold its bottling operations in Shepton in England for €9 million, while also completed the disposal of its cidery in Shepton Mallet.

C&CGroupOrchard“We remain on track to deliver the €15 million of targeted cost savings and efficiency gains,” he says. “With improving utilisation rates and stable input cost environment, we now have a well-invested, low cost manufacturing platform that will enable our brands to compete effectively in price sensitive markets.”

Stephen Glancey continues: “In the first half we have seen some variability in consumer demand and are cautious on forward consumer reaction to political and economic conditions in our core markets. However, we have a business that is capable of weathering these challenges and our confidence in the medium to long term outlook is based on the strength of our key brands, our business model and leading positions in Ireland and Scotland – where fundamentals remain strong. We also have a growing export business; a broadening portfolio of premium and speciality beers and ciders; and the right partner for our US brands. Our cash generative nature and balance sheet strength should ensure attractive returns for shareholders. We are well placed to either capitalise on the opportunities which may arise from the current phase of consolidation in our industry or return capital to shareholders.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements