Trading Statement
C&C Group Plc
26 August 2004
August 26, 2004
PRE-CLOSED PERIOD TRADING STATEMENT FOR THE FIRST HALF YEAR ENDED AUGUST 31,
2004
Dublin, London, August 26, 2004: C&C Group plc ('C&C' or the 'Group'), a leading
manufacturer, marketer and distributor of branded beverages and snacks in
Ireland, today issued the following statement in advance of its closed period
for the half-year to August 31, 2004.
The interim results for the six months ending August 31, 2004, will be announced
on October 11, 2004. This is the Group's first interim report since its initial
public offering (IPO) and listing on the Irish Stock Exchange and the London
Stock Exchange.
Financial Overview for the First Half of Fiscal Year 2005
• Group turnover is expected to have increased by approximately 4% in the
period while margins, on a constant currency basis, were broadly unchanged.
• Performance in each of the Group's three divisions; Alcohol, International
Spirit & Liqueurs and Soft Drinks and Snacks, was broadly in line with
C&C's expectations.
• This represents a creditable performance in light of the impact of the
ban on smoking in the workplace and mixed summer weather.
• The €550 million debt facility put in place at the time of the IPO has
been successfully syndicated and cash flow is strong.
Alcohol Division
• Sales volume of the division's principal brand, Bulmers, is expected to
show growth of about 4% in the half year. The change in the timing of the
annual price increase and the associated trade sell-in from February to May
boosted the performance comparison - underlying growth is estimated at
about 2% which is in line with the Group's expectations.
• The ban on smoking in licensed premises came into effect at the end of
March and is a contributory factor in the estimated overall decline of 2%
in the long alcohol drinks (LAD) market in the 5 months to 31 July 2004
(comprising an estimated 5% decline in the on-trade and a 10% growth in the
off-trade). The full year financial impact of the ban is dependent on
consumer behaviour over the winter period.
• The Group's export cider brand, Magners, continues to achieve strong
growth in volumes and has increased market share in Northern Ireland.
Performance to date, in its full roll-out in Scotland, is encouraging.
International Spirits and Liqueurs
• The re-launch of Carolans took place on schedule in June and has been well
received by distributors. The Group's two growth brands, Carolans and
Tullamore Dew achieved strong shipment growth in the period.
• The currency impact of the weaker US/Can $ on Operating Profit will amount
to €6.8m in the full year compared to the previous year. Approximately
one third of this arises in the half year to August.
Soft Drinks and Snacks
• Volume decline in the Republic of Ireland (ROI) Carbonated Soft Drinks
market slowed to 2% in the five months to 31 July 2004. Continued strong
growth in Bottled Water and Energy/Sports drinks resulted in an overall
flat Soft Drinks market in the five months. The more profitable Licensed
Trade market declined by approximately 8% in the five months. The snack
market is expected to have been flat in the period.
• C&C benefited in the period from: its focus on profitable volume in
the grocery trade which is driving increased price yield; continued
strong growth from its sports drink - Club Energise; the successful
launch of the Tayto Honest range of healthier snacks; and cost
reduction in snack production.
• Decline in licensed trade volume has adversely affected mix while pricing
pressure in the water category has resulted in a drop in the Group's
market share.
Second Half Outlook
The favourable prevailing economic conditions in Ireland are expected to
continue throughout the remainder of fiscal year 2005 but the effect of the
smoking ban in the winter period remains unpredictable. However, first half
performance gives confidence that the Group is on track to achieve its full year
financial and commercial objectives.
Unaudited Results for 6 months to August 31, 2003
In advance of C&C's results for the 6 months to August 31, 2004, which will be
announced on October 11, the Group's turnover and operating profit, from
continuing operations, for the 6 months to August 31, 2003 are outlined below.
C&C Turnover & Operating Profit
Continuing operations 6 months 6 months 6 months
to Aug 31 '03 to Aug 31 '03 to Aug 31 '03
€ million € million %
Turnover Operating Profit Operating Margin
Alcohol 208.3 36.2 17.4%
International 28.4 8.9 31.3%
Soft drinks & Snacks 127.2 17.8 14.0%
Total 363.9 62.9 17.3%
Pre-closed Period Trading Statement - Analyst Conference Call Details
Mr Maurice Pratt, Group Chief Executive Officer and Mr Brendan Dwan, Group
Finance Director will host a conference call for analysts and investors at 2:
00pm (local Irish time) today. Dial in details are available from K Capital
Source on +353 1 631 5500 or c&cgroup@kcapitalsource.com
About C&C Group plc
C&C is one of the largest manufacturers, marketers and distributors of branded
beverages in Ireland and Northern Ireland and savoury snacks in Ireland. The
Group owns several of Ireland's most recognised beverage and savoury snacks
brands, with leading market shares in various segments of the Irish beverage and
savoury snacks markets, including Bulmers cider, Ballygowan bottled water, Club
Orange soft drinks and Tayto crisps. Additionally, the Group distributes in
Ireland several leading international brands owned by third parties, such as 7UP
and Pepsi soft drinks, and Volvic and Evian bottled water, and a wide-ranging
portfolio of wines and spirits. In addition to its Irish operations, the Group
exports spirits and liqueurs to over 80 overseas markets and exports cider to
the United Kingdom, the United States and Continental Europe.
Investors and analysts Irish Media International Media
Mark Kenny or Paddy Hughes or Edward Orlebar
Jonathan Neilan Mark Cahalane Finsbury Group
K Capital Source Drury Communications Tel: +44 20 7251 3801
Tel: +353-1- 631 5500 Tel: +353 1 260 5000
Email: Email: Email:
c&cgroup@kcapitalsource.com phughes@drurycom.com edward.orlebar@finsbury.com
Or:
mcahalane@drurycom.com
This information is provided by RNS
The company news service from the London Stock Exchange