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Update - Trading Statement
RNS Number : 2458C
C&C Group Plc
29 August 2008
TRADING STATEMENT
FOR THE SIX MONTHS ENDING 31 AUGUST 2008
CCR.I CCR.L
Dublin, London, 29 August, 2008: C&C Group plc (‘C&C’ or the ‘Group’), a manufacturer, marketer and distributor of branded beverages in Ireland and the U.K., today issued the following Trading Statement for the six months ending 31 August 2008. Interim results, for the six months ended 31 August 2008, will be announced on 9 October, 2008.
Six months ended 31 August, 2008
Revenue(i), for the six months to 31 August 2008, is expected to be down by 8% compared with the same period in 2007. Operating margin(i) is expected to increase by approximately one and a half percentage points in the same period. The operating margin increase reflects the benefits of the Group’s re-organisation and re-structuring programme which was successfully implemented as of March 2008.
The combined effect of revenue decline and margin improvement is expected to be a broadly unchanged operating profit(i) for the half year relating to the same period in 2007.
Operations Review
Revenue for the Cider division is expected to be down by approximately 11% compared with the same period last year – broadly in line with sales volume.
Bulmers cider volumes in the Republic of Ireland are expected to show a decline of approximately 11% in the in the half year. Magners volumes are expected to show a decline of approximately 15% in the period. The performance reflects a deteriorating economic environment in C&C’s principal markets and in particular the poor performance of the on-trade channel.
Spirits & Liqueurs shipments are expected to increase by 3% over the same period last year.
Performance Review and Outlook
The Group’s financial performance, for the first half, is at the lower end of the guidance given in the Interim Management Statement issued on the 11th July, 2008. The expected return to volume growth in Great Britain in Quarter 2 did not materialise due to the worsening economic environment, continuing competitive pressure and a slower realisation of the benefits from market initiatives. Performance in Ireland has, in addition to the economic environment, been affected by the cumulative impact of two consecutive poor summers on category recruitment.
C&C expects the current difficult market conditions to continue throughout the second half of the year, which, notwithstanding the benefit of the roll out of draught Magners in Great Britain, will result in continued pressure on revenue and operating profit.
(i) Continuing operations – before exceptional items and at constant currency. The difference between actual and constant currency has a minimal impact on operating profit.
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Investors and analysts
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Irish Media
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International Media
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Mark Kenny/Jonathan Neilan
K Capital Source
Tel: +353 1 631 5500
Email: c&cgroup@kcapitalsource.com
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Paddy Hughes
Drury Communications
Tel: +353 1 260 5000
Email: phughes@drurycom.com
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Edward Orlebar or Charlotte Kirkham
M Communications
Tel: +44 207 153 1523
Email: orlebar@mcomgroup.com
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Special Note regarding forward-looking statements
The announcement includes forward-looking statements, including statements concerning expectations about future financial performance, economic and market conditions, etc. These statements are neither promises nor guarantees, but are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.
This information is provided by RNS
The company news service from the London Stock Exchange