C&C Group Plc
07 July 2006
Chairman's Updating Statement
Dublin, London, 7 July, 2006: C&C Group plc ('C&C' or the 'Group'), a leading
manufacturer, marketer and distributor of branded beverages in Ireland and the
UK, today issued the following Chairman's statement at the company's AGM held at
the Westbury Hotel, Grafton Street, Dublin 2.
"C&C is pleased to report that both revenue and operating profit, for the first
four months of its current financial year, are significantly ahead of our
expectations.
This primarily reflects better than expected Magners' sales growth following its
UK national roll-out in March of this year. It also reflects Bulmers' continuing
out-performance of the Irish Long Alcohol Drinks market and the benefit of good
early summer weather.
The Group's expansion of its cider manufacturing capacity is proceeding to plan
and the new bottling plant came on stream in June 2006.
C&C's experience to date sustains our belief that Bulmers' strength and Magners'
investment led strategy provides your Group with attractive and sustainable
growth prospects.
There has been some disruption to the supply of both soft drinks and cider to
customers since late June due to a constraint on the supply of CO2 to the UK and
Irish markets. While this supply constraint is impacting certain aspects of its
business C&C does not currently expect that it will have a material adverse
effect on the Group's overall financial performance in 2006/07.
As announced earlier in the week, C&C has entered into an agreement to dispose
of its snacks business for a consideration of €62.3 million. Subject to the
receipt of regulatory consents, completion of the sale is expected to occur
before the end of 2006. Proceeds arising from this disposal will be used to pay
down debt. We would like to record our appreciation for the commitment and
contribution of all of those involved in our snacks business over many years."
The Group will issue a first half pre-close trading statement on 31 August
2006.
ENDS
Investors and analysts Irish Media International Media
Mark Kenny or Jonathan Neilan Paddy Hughes or Ann-Marie Curran James Leviton
K Capital Source Drury Communications Finsbury Group
Tel: +353 1 631 5500 Tel: +353 1 260 5000 Tel: +44 20 7251 3801
Email : c& Email: phughes@drurycom.com Email:
cgroup@kcapitalsource.com james.leviton@finsbury.com
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