C&C H1 Trading Performance Impacted By Weather
C&C Group has published its interim results for the six months ending 31 August, with its performance once again impacted by the poor summer weather. Revenue was down by 13.6% in Ireland (on a...
C&C Group has published its interim results for the six months ending 31 August, with its performance once again impacted by the poor summer weather.
Revenue was down by 13.6% in Ireland (on a constant currency basis) for the period, the company reported, with operaing profit slipping 18.9% to €30 million.
Bulmers volume was down 13.2%, with C&C quoting internal estimates that suggest ‘more than 50% of the cider volume decline is down to a poor summer for cider consumption’.
On its brand-led wholesale model in Ireland, C&C said that the model has ‘taken longer than anticipated’ to reach optimum operating level.
While C&C did not mention Heineken’s rival cider, Orchard Thieves directly, it did state that ‘both the launch of a competitive cider brand and the expansion of craft in draught has had an impact on Bulmers’ performance. The former has so far presented as more of a challenge in the off-trade.
‘There is an inevitable degree of disruption and share loss as the new entrants fight for space. But with the Bulmers brand commanding more than 90% share in the on-trade, the position should be defendable as cider consumption normalises again.’
“Our performance in the first half reflects difficult trading conditions in our core markets of Ireland and Scotland,” said Stephen Glancey, C&C Group chief executive. “Many of the factors contributing to this are one-off or transitional, including poor weather; the transition to a brand led wholesale model; and, legislative change in Scotland.”
In Scotland, revenues fell by 8.4%, while its C&C Brands business in England and Wales saw a decline of 9.3%. North America saw revenues decline 11.9%, while its Export business saw an increase of 15.8%.
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