Drinks group C&C (CCR) will need the luck of the Irish to combat a squeezed English cider market. Fortunately, strong trading in Ireland, Scotland and overseas last year offset a dismal showing in England and Wales, lifting group operating profit 11 per cent to €127m (£103m).
The Irish numbers were buoyed by the acquisition of beverage wholesaler Gleeson. But even without that deal total volumes would have improved by 1 per cent and operating profit by 9 per cent. Beer volumes in Ireland rose nearly 4 per cent, and the upward trend is expected to continue thanks to a new craft brewery in Clonmel.
In the UK, however, new entrants pushed down both prices and volumes for C&C's cider operation. While the wider market saw volume growth of 2 per cent, boosted by the hot summer, the owner of Magners and Bulmers lost 11 per cent of its business. The operating margin also contracted by 3.6 percentage points to 18.4 per cent, depressing operating profit by 29 per cent to €21m.
Tennent's beer, which is also owned by C&C, performed much better. Operating profits rose 19 per cent to €34.6m, despite lower volumes, thanks entirely to margin gains.
Analysts at Societe Generale expect EPS of 31ȼ for the current financial year, up from 29ȼ.
| C&C (CCR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 443ȼ | MARKET VALUE: | €1.54bn | |
| TOUCH: | 443-444ȼ | 12-MONTH HIGH: | 493ȼ | LOW: 367ȼ |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 246ȼ* | NET DEBT: | 17% | |
| Year to 28 Feb | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2010 | 491 | 64 | 18.2 | 6 |
| 2011 | 770 | 80 | 22.1 | 6.6 |
| 2012 | 717 | 111 | 30.0 | 8.17 |
| 2013 | 724 | 105 | 27.2 | 8.75 |
| 2014 | 913 | 96 | 24.7 | 10 |
| % change | +26 | -9 | -9 | +14 |
Ex-div: 28 May Payment: 15 Jul *Includes intangible assets of €722m, or 208ȼ a share | ||||
