Interim Management Statement

Interim Management Statement

C&C Group PLC

Interim Management Statement

C&C Group plc (‘C&C’ or the ‘Group’), a leading manufacturer, marketer and distributor of branded beverages in Ireland and the UK, today issues the following Interim Management Statement covering the period from 1 September 2010 to the date of this statement.

Highlights:

• Recovery trend continues in Magners GB with year on year volumes up 4.8% in the 3 months to 30 November and net revenue close to level in the quarter,
• Bulmers volumes in the Republic of Ireland up 2.4% during the 3 months against a weaker set of comparatives. Revenue ‘deflation’ for the Irish cider business remains around 4%,
• Good growth in export (sales outside Ireland and the UK) of Magners with volumes up 42.6% in the quarter and 36.7% in the 9 month period,
• Severe impact of the weather on pubs in November and December in part alleviated by a robust performance in the UK off trade for Magners over Christmas,
• Cash generation remains positive and a cash neutral position is anticipated for the year end,
• Re-affirming operating profit guidance in the range of €102m-€106m for the full year.

Net Revenue & Volume Analysis

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Net Revenue Analysis - Change on Prior Year	Â	6 Months ended 31 Aug 2010	Â	3 Months ended 30 Nov 2010	Â	9 Months ended 30 Nov 2010
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Original cider business(i)	Â	(5.3%)	Â	(0.5%)	Â	(3.4%)
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- Republic of Ireland	Â	(8.1%)	Â	(2.2%)	Â	(6.5%)
- Magners Brand GB	Â	(5.8%)	Â	(0.3%)	Â	(3.2%)
(i) Original cider business excludes Gaymers cider volumes. Net revenue is on a constant currency basis

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Volume Analysis - Change on Prior Year	Â	6 Months ended 31 Aug 2010	Â	3 Months ended 30 Nov 2010	Â	9 Months ended 30 Nov 2010
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Magners and Bulmers	Â	(0.2%)	Â	4.4%	Â	1.1%
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Bulmers ROI	Â	(3.4%)	Â	2.4%	Â	(1.7%)
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Total Magners	Â	1.6%	Â	5.6%	Â	2.7%
- Magners GB	Â	0.7%	Â	4.8%	Â	1.7%
- Magners Northern Ireland	Â	(20.6%)	Â	(21.9%)	Â	(21.0%)
- Magners Rest of World	Â	34.4%	Â	42.6%	Â	36.7%

Republic of Ireland: The trading environment in the Republic of Ireland remains challenging and unpredictable. Bulmers volume in the 3 months to 30 November grew by 2.4% against a weaker set of comparatives. Price deflation and channel mix reduced net revenues by 4.1% in the quarter, representing a slight improvement on the equivalent 4.4% at the half year. The improvement is partly attributable to the year on year comparison for the 3 months no longer being distorted by the impact of the pint bottle price reduction in June 2009.

Great Britain: The improving volume trend for the Magners brand in GB continued in the 3 months to 30 November. Year on year volumes were up 4.8% in the quarter. As was the case at the half year, channel mix weighting in favour of the off trade, the absorption of the duty increase and promotional activity in the off trade combined to deflate net revenues by just over 5%. The net volume and price impact leaves net revenues down 0.3% in the quarter, in comparison with minus 5.8% at the half year.

Rest of the World: Volumes of Magners exported in the 3 months to 30 November grew by 42.6%. North America and Australia again provide most of the growth. Exports for the 9 month period account for over 12% of total Magners volume.

Acquired Businesses: The timing of the Tennent’s and Gaymers acquisitions means there are no prior year comparatives. For the 3 months to 30 November 2010, both the Tennent’s and Gaymers businesses continued to build upon the good performances detailed in the half year results. Tennent’s lager volume in the Scottish on trade is trending ahead of the lager category and the unit retail price achieved in the off trade continues to improve.

Trading since 1 December 2010

The trading environment over the Christmas period was mixed for both Ireland and Great Britain. The adverse winter weather undoubtedly had a severe impact on trading activity in pubs. Magners volumes shipped to the UK on trade were down 19% in comparison with the same period last year. In Ireland, total Bulmers volumes shipped across both channels of trade in the month were down 5%.

The poor weather in the UK appears to have encouraged consumers to stay at home, weighting the festive demand further in favour of the off trade as a consequence. Magners UK off trade volumes shipped in December 2010 were up 52%, albeit against a weak set of comparatives in December 2009.

Whilst the channel mix is inevitably negative for the revenue line, the good performance in the UK off trade leaves us confident that we have now achieved our initial goal of volume growth for Magners in line with the category market growth. Overall shipments of Magners in the UK were 24% ahead during December.

Group beer volumes were level year on year through the Christmas trading period.

Performance Review and Outlook

Economic conditions in the Group’s core markets remain unpredictable and the adverse weather has added to the existing consumer challenges. However, we remain confident of delivering to the previously stated guidance for operating profits in the range of €102m-€106m for the full year.

ENDS

About C&C Group plc

C&C Group plc is a leading manufacturer, marketer and distributor of branded beverages in Ireland and the UK. C&C manufactures the leading Irish cider brand, Bulmers, and the premium international cider brand, Magners, for export to the United Kingdom, the United States and Continental Europe. C&C also owns the Tennent's beer brand which is primarily sold in Scotland and Northern Ireland and The Gaymer Cider Company which produces a range of branded and own label cider for the on and off-trade in the UK. The Group also distributes a number of beer brands in the Scottish, Irish and Northern Irish markets.

Note regarding forward-looking statements

This announcement includes forward-looking statements, including statements concerning expectations about future financial performance, economic and market conditions, etc. These statements are neither promises nor guarantees, but are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.

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C&C Group plc	Â	Investors and Analysts
  Kenny Neison Strategy Director & Head of Investor Relations   Tel: [phone] Email: [e-mail] Â	Â	  Mark Kenny/Jonathan Neilan FD K Capital Source   Tel: [phone] Email: c&[e-mail] Â

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Media | Dublin	Â	Media | London
  Paddy Hughes Drury   Tel: [phone] Email: [e-mail] Â	Â	  Robert Ballantyne/ShanshanWillenbrock Cardew Group   Tel: [phone] Email: [e-mail] Â

Reconciliation of Revenue to Net Revenue for the financial year ended 28 February 2010

Following changes in excise duty rates in Great Britain and Ireland, in the Finance Results for the six month period ended 31 August 2010 the Directors considered it appropriate to change the layout of the Income Statement to highlight separately the value of Revenue net of excise duties (Net Revenue) in order to enhance the visibility and understanding of the underlying Net Revenue performance of the Group. The comparative amounts for the year ended 28 February 2010 are now disclosed below for information only:-

€m	Â	Revenue	Â	Duty	Â	Net Revenue
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Cider ROI		153.0		(45.4)		107.6
Cider GB		149.0		(26.2)		122.8
Excluding Gaymers		139.1		(21.7)		117.4
Cider ROW		15.7		-		15.7
Cider NI		18.5	Â	(3.4)	Â	15.1
Total Cider		336.2		(75.0)		261.2
Excluding Gaymers		326.3		(70.5)		255.8
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Tennent’s GB		70.7		(39.6)		31.1
Tennent’s IoI		10.3	Â	(4.0)	Â	6.3
Total Tennent’s		81.0		(43.6)		37.4
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Third party brands		73.6		(9.5)		64.1
Spirits & Liqueurs		78.0		-		78.0
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Total		568.8		(128.1)		440.7
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