C&C Group Revival Continues
Year-on-year volume growth of 4% for its Magners cider brand, including 3.6% growth in Great Britain and 33.8% export growth, helped C&C Group, the Irish and UK branded alcoholic drinks group, to increase operating profit before exceptional items by 17% to Eur105m in the year ending February 28th 2011. Buoyed by contributions from acquisitions (Tennent’s lager and Gaymers cider), net revenue rose 46% to Eur529.6m.
During the year, C&C Group successfully integrated and delivered synergy benefits from recently acquired businesses as it continued to build momentum behind the Magners brand in Great Britain; while protecting the Bulmers cider brand’s earnings position in Ireland.
John Dunsmore, chief executive of C&C Group.
Operating profit in the original cider business increased 9.0% to Eur71.1m while acquisitions contributed operating profit of Eur29.8m. C&C Group is now effectively debt free having reduced net debt by Eur359m to Eur6m in 2010/11.
“Our principal cider brands, Bulmers and Magners, are in good health. The group’s balance sheet strength and cash generation capability provide us with financial flexibility to invest in the continuing development of our business and to support our brands,” says John Dunsmore, chief executive of C&C Group. “The UK, as the world’s largest cider market, continues to grow and attract new entrants to the category. Magners now enjoys growth and momentum in both the UK and international markets. We intend to protect the strength of the brand with incremental support.”
He adds: “While we have not assumed any pick up in consumer spend within the next twelve months, the shape of our business today should sustain earnings growth.”
C&C Group expects operating profit to grow from Eur100.5m last year to a range of between Eur108m and Eur115m for its current financial year.
