'Subdued' Trading Statement Likely For C&C Group
C&C Group is likely to issue a 'subdued' trading statement this coming Thursday, the day of its AGM, according to market analysts Shore Capital. The trading update will cover the period from 1...
C&C Group is likely to issue a 'subdued' trading statement this coming Thursday, the day of its AGM, according to market analysts Shore Capital.
The trading update will cover the period from 1 March to 2 July inclusive, and Shore Capital's Phil Carroll expects "the tone of the statement to be a little subdued, with spring and early summer weather being unseasonably colder than normal and therefore, impacting demand in the group’s core Irish and Scottish markets."
In Ireland, where the group's Bulmers brand is still the undisputed leader in the Cider category, Shore Capital expects "the LAD market to be broadly flat to slightly down and it would be interesting to see if the swing back to the on-trade has continued."
Similarly, in England and Wales, where the group operates the Magners and Gaymers cider brands, colder weather in the first half of the year "is likely to be a factor, along with a highly competitive and promotional environment in the off-trade".
The group's US business is also likely to come under the spotlight, with its Woodchuck brand posting a decline in volumes of 21% in its H1 last year.
"We need some comfort on the current trading performance and so robustness of forecasts before we can be more positive on the stock," says Carroll.
"We believe that at present the investment case lacks a catalyst to drive upside potential. However, a good summer in these isles if one ever arrives could help."
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