Falling cider consumption in the UK and Ireland squeezed profits at drinks group C&C (CCR). Strip out an improved exchange rate effect, and a contribution from December's acquisition of Vermont Hard Cider Company (VHCC), and net revenue fell 6.8 per cent year on year to €504.6m (£428m), while operating profit fell 1.1 per cent to €113.4m.
Trading in Ireland did improve in the second half and beer sales were solid enough, but Irish cider revenue fell 10.8 per cent and Irish operating profit dropped 11.9 per cent to €38.5m. The UK cider market was even tougher. Magners disappointed, with key summer events such as the Olympics failing to boost volumes - UK cider volumes slipped 15 per cent. Net UK cider revenue tumbled 20.2 per cent to €137.8m and margin improvement wasn't enough to offset that - so UK cider profit slumped 15.6 per cent to €30.9m.
Still, Tennent's beer increased revenue 6.8 per cent, despite a 5.9 per cent volume slide, and improved pricing and cost control widened the operating margin by 5.7 percentage point; divisional operating profit rose 34.7 per cent to €30.3m. Overseas, meanwhile, volumes grew 55.2 per cent and the operating profit grew 33.8 per cent to €9.1m.
Broker Goodbody expects EPS of 31.8¢ for 2014 (from 27.7¢ for 2013).
| C&C (CCR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 474.9¢ | MARKET VALUE: | €1.64bn | |
| TOUCH: | 474.6-475¢ | 12-MONTH HIGH: | 521¢ | LOW: 317¢ |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 226¢* | NET DEBT: | 16% | |
| Year to 28 Feb | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2009 | 514 | -66.0 | -19.4 | 9.00 |
| 2010 | 491 | 64.0 | 18.2 | 6.00 |
| 2011 | 770 | 80.0 | 22.1 | 6.60 |
| 2012 | 717 | 111 | 30.0 | 8.17 |
| 2013 | 724 | 104 | 27.0 | 8.75 |
| % change | +1 | -6 | -10 | +7 |
Ex-div: 22 May Payment: 12 Jul *Includes intangible assets of €707m, or 205¢ a share £1=€1.18 | ||||
