Sterling Drop 'Major Factor' In C&C's Forecasted Dip In Operating Profits
According to C&C Group, the 'major factor' in the decline of operating profit was the devaluation of sterling. It is expecting a further drop when it posts its preliminary results on 17 May, 2017.
Last year, the Bulmers makers results showed that its operating profit fell to €103.2 million from €115 million for the previous financial year. In a trading update for the 12 months to February 28th, C&C said operating profit is expected to be in the region of €94-€96 million, reported Irishtimes.ie
It said the benefits were outweighed by incremental brand investment and price deflation attributable to changes in channel and pack mix across the group. “Our wholesale business stabilised in the second half of the year but did not recover the margin losses,” it said.
In terms of the market, it said cider in Ireland continued to grow its share of long alcohol drinks as a generation of younger drinkers entered the category.
C&C Groups principle brands are Bulmers the leading Irish cider brand, Magners the premium international cider brand, the C&C Brands range of English ciders and the Tennents beer brand.
© 2017 - Checkout Magazine by Donna Ahern