C&C Group Plc
13 September 2006
€200 million capital investment programme
in cider manufacturing capacity
CCR.I CCR.L
Dublin, London, September 13th, 2006: C&C Group plc ('C&C' or the 'Group'), a
leading manufacturer, marketer and distributor of branded beverages in Ireland
and the U.K., today hosted a site visit for analysts at its Clonmel cider
manufacturing facility.
At the site visit, C&C announced a €200 million capital investment programme to
double its cider manufacturing capacity in Clonmel within an 18-month timeframe.
It is expected that key elements of the capacity increase will become
operational in spring 2007. The expansion reflects the rapid growth of C&C's
Magners cider brand.
The resulting investment in both fixed and working capital will reduce the
Group's FCF/EBITDA (i) expectation to a 30-40% range in each of 2006/07 and
2007/08 fiscal years. This, however, will not affect the Group's progressive
dividend policy.
Brendan McGuinness, Managing Director of C&C's Cider Division commented "This is
the Group's largest ever capital investment programme and is designed to resolve
our current supply difficulties and provide an ample level of spare capacity
going forward".
(i) Free Cash Flow/Earnings before interest, tax, depreciation and amortization
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 exports
spirits and liqueurs, including the premium Irish whiskey brand, Tullamore Dew,
to over 80 international markets.
The Group's portfolio also comprises some of Ireland's leading beverage brands
including Club soft drinks and Ballygowan bottled water. C&C also distributes
within the Irish market several leading international brands, owned by third
parties, including 7UP and Pepsi soft drinks and a portfolio of wines and
spirits.
Investors and analysts Irish Media International Media
Mark Kenny/Jonathan Neilan Paddy Hughes/ Ann-Marie Curran Edward Orlebar
K Capital Source Drury Communications M Communications
Tel: +353 1 631 5500 Tel: +353 1 260 5000 Tel: +44 207 153 1523
Email: Email: Email:
c&cgroup@kcapitalsource.com phughes@drurycom.com orlebar@mcomgroup.com
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