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
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