C&C Group Sees Profits Slip Due to 'Heightened Economic Uncertainty'
C&C Group has seen its operating profits decline by 7.9 per cent to €55.1 million for the first half of 2016 as a result of volatility in consumer behaviour and "heightened economic uncertainty" due to Brexit.
Although, the drinks company said that the second half of the year will benefit from increased investment in marketing and cost reduction plans, reports the Irish Times.
The group reported net revenues of €307 million and saw its key brands, such as Tenants and Bulmers and Magners all experiencing growth, with the latter seeing sales grow by 11 per cent. Its volume of premium beers and ciders also grew by 24 per cent in the first half of 2016.
Discussing the report, chief executive Stephen Glancey said: "In the first half we have seen some variability in consumer demand and are cautious on forward consumer reaction to political and economic conditions in our core markets. However, we have a business that is capable of weathering these challenges and our confidence in the medium to long-term outlook is based on the strength of our key brands, our business model and leading positions in Ireland and Scotland - where fundamentals remain strong."
Glancey mentioned C&C's rising export business and the broadening of its premium beers and ciders as factors in overcoming the aforementioned challenges.
Glancey added: "Our consolidation and efficiency programme is going to plan with minimum disruption to the broader business. As part of the operational consolidation we invested €9 million in a new PET bottling line at Clonmel in the first half and sold our bottling operations in Shepton for €9 million. Last week we also completed the disposal of our cidery in Shepton Mallet. We remain on track to deliver the €15 million of targeted cost savings and efficiency gains."