When it rains it doesn't pour cider, judging by C&C 's (CCR) assertions about the impact of inclement weather on its trading. The drinks maker, which makes Bulmers and Magners ciders as well as Tennent's beer, is dependent for sales on Ireland and Scotland, which both suffered "poor" conditions in the important summer months. Its Irish revenues fell 13.6 per cent to €195.8m (£141.53m), knocking operating margins back 1.7 points to 21.1 per cent.
But amid the cold and wet conditions were some bright spots. The C&C Brands division, which sells into England and Wales, registered a 2.6 per cent rise in operating profits to €7.8m, and the company's small export business saw revenues jump nearly 16 per cent to €13.2m. Kenny Neison, chief financial officer, acknowledged the export business was C&C's growth engine, given that Ireland and Scotland are "ex-growth markets". The group also distributes products for Anheuser-Busch InBev, which may lead to opportunities for consolidation: chief executive Stephen Glancey said the likely acquirer of SABMiller would probably seek to keep as many of its existing tie-ups as possible.
The company also announced a €100m share buyback programme. Mr Neison insisted this did not point to under-investment in the business, which he said was "well invested".
Analysts at Barclays expected full-year pre-tax profit of €105m prior to the results, leading to EPS of 26¢ a share, down from €106m and 27¢ for the February 2015 year-end.
| C&C (CCR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 372¢ | MARKET VALUE: | €1,258m | |
| TOUCH: | 371-372¢ | 12-MONTH HIGH: | 401¢ | LOW: 316¢ |
| DIVIDEND YIELD: | 3.2% | PE RATIO: | na | |
| NET ASSET VALUE: | 238¢* | NET DEBT: | 15% | |
| Half-year to 31 Aug | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2014 | 528 | 60.3 | 15.3 | 4.5 |
| 2015 | 514 | 52.7 | 13.7 | 4.7 |
| % change | -3 | -13 | -10 | +5 |
Ex-div: 5 Nov Payment: 18 Dec *Includes intangible assets of €652m, or 192¢ a share | ||||
