The fallout from supermarkets' price competition and simplification programmes dragged on cider and beer maker C&C (CCR) in the first half, with several of its weaker brands delisted. This combined with beer and cider price deflation, and the desire for cheaper aluminium packaging, to hurt C&C's brands division, which focuses on England and Wales. Constant-currency operating profit here fell 41 per cent to €4.4m (£3.9m), due to lower prices and volumes.
Ireland, C&C's largest region by sales, registered flat operating profit at €29.8m, whereas Scotland's fell nearly 10 per cent to €17.9m. Larger quantities of its key Bulmers brand were sold in Ireland but some share was ceded in draught cider. In the off-trade, which includes sales to supermarkets, it retained a price premium for Bulmers compared with rival brands but this narrowed in the half. It was also tough in Scotland as competition and pricing pressures remained ramped-up, with the industry struggling with the structural alcohol decline linked to new drink-drive limits imposed in Scotland in December 2014.
Prior to these results, analysts at Davy expected pre-tax profit of €95.5m in the year to February 2017, leading to EPS of 26.5¢ (from €56.3m and 14.4¢ FY2016).
C&C (CCR) | ||||
---|---|---|---|---|
ORD PRICE: | 352¢ | MARKET VALUE: | €1.1bn | |
TOUCH: | 352-354¢ | 12-MONTH HIGH: | 424¢ | LOW: 338¢ |
DIVIDEND YIELD: | 4.0% | PE RATIO: | 24 | |
NET ASSET VALUE: | 202¢ | NET DEBT: | 24% |
Half-year to 31 Aug | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
---|---|---|---|---|
2016 | 514 | 52.7 | 13.7 | 4.73 |
2017 | 450 | 50.3 | 13.8 | 4.96 |
% change | -12 | -5 | +1 | +5 |
Ex-div: 3 Nov Payment: 16 Dec *Includes intangible assets of €631m, or 200¢ a share |