C&C Group Reports Losses Following Brexit
Drinks company C&C Group has reported a loss in revenue of 6.9%, with net revenue decreasing to €559.5 million, for the year ending 28 February 2017.
The group, which manufactures and distributes cider, beer and soft drinks, saw little change in its operating profits, which fell by just 0.4% to €95 million.
However, the company reports volume growth in its core brands - Bulmers, Magners, and Tennent's - of 2.6%, while its premium and craft portfolio experienced an increase of 60%.
"While trading remained tough, we invested in and delivered volume growth across our core brands," said Stephen Glancey, CEO of C&C Group.
Glancey said that the devaluation of sterling following Brexit had a negative impact on the group's numbers, but he noted the progress that was made throughout the year as a result of investment.
"The results reflect the increased investment behind our core brands, which returned to volume growth of 2.6% and the €15 million efficiency benefits arising from our production rationalisation programme."
"We made further progress during the year in growing and developing our portfolio of premium and craft beers and ciders," he added. "Our investment partnerships with some of the most exciting craft breweries across the UK and Ireland, such as Five Lamps in Dublin, Whitewater in Northern Ireland and Drygate in Glasgow, all had a good year."
Brexit remains a concern for the drinks company this year, and Glancey noted that the political uncertainty is making predictions on trading patterns and consumer behaviour "particularly challenging."
"We have commenced our planning for Brexit, particularly in respect of trading on both sides and across the border in Ireland," he said. "A lot of uncertainties remain, but we are encouraged by the initial determination on both sides to minimise the potential economic and political friction of a hard land border on the island of Ireland."
C&C plans to meet its targets this year through a combination of acquisitions and share buybacks.
© 2017 European Supermarket Magazine - Article by Sarah Harford.