C&C Group Plc
28 February 2007
TRADING STATEMENT
FOR THE YEAR ENDING 28 FEBRUARY 2007
CCR.I CCR.L
Dublin, London, 28 February 2007: 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 issued the following trading statement for the year ending
28 February 2007. Preliminary results, for the year ending 28 February 2007,
will be announced on 9 May 2007.
Financial Overview
Turnover growth from continuing operations(i) in the year ending 28 February
2007, compared with the same period in 2006, is expected to be approximately
25%. The Group's overall operating margin(ii) is expected to increase by
approximately six percentage points for the full year notwithstanding
significantly increased marketing investment in the period.
This performance reflects continued strong growth in the Cider division,
primarily as a result of the excellent performance of Magners in Great Britain
and Bulmers' continuing out-performance of the Irish LAD(iii) market.
As previously indicated, due to capital expenditure associated with cider
capacity expansion and investment in working capital (including a build-up of
fresh juice stock) FCF/EBITDA(iv) for 2006/07 will be significantly reduced. The
ratio is expected to be close to 30% for the year.
Operations
Turnover growth in the Cider division for the period is expected to be in excess
of 80% arising from volume growth of approximately 5% for the Group's Irish
cider brand, Bulmers, and volume growth of approximately 225% for the Group's
international cider brand, Magners.
In an overall Republic of Ireland LAD market which is estimated to have been
broadly flat in the period, Bulmers' underlying strength, enhanced by
particularly good summer weather, enabled the brand to outperform the LAD market
significantly.
The performance of Magners in the period reflects the success of the national
rollout in Great Britain which commenced in March 2006. Performance in the
first half of the financial year was enhanced by exceptional summer weather in
Great Britain. The brand continued to be constrained in the second half year by
an inability to supply elements of the Great Britain market due to insufficient
manufacturing capacity at critical periods.
Shipment volumes in the Spirits & Liqueurs division are expected to show growth
of 11% arising from continuing double digit growth for Tullamore Dew and a solid
recovery for Carolans. It is expected that overall depletions growth will be
about 7% in the period.
Turnover in the Soft Drinks division is expected to be down by approximately 1%
reflecting the loss of the Danone Water brands. Underlying profit performance
showed solid growth during the period.
The Distribution division is expected to show a significant decline in profit as
a result of the loss of the former Allied Domecq brands at the start of 2006.
Outlook
C&C plans to bring increased Cider manufacturing capacity on stream in Spring
2007. This increased capacity should enable C&C to capitalise fully on the
opportunities for Magners in all trade channels in Great Britain in 2007.
Magners growth in Great Britain and further share gains for Bulmers in Ireland
is expected to be the main source of Group profit growth in 2007/08.
The Group plans to increase its overall level of marketing investment
significantly in 2007/08. The increase will embrace Magners in Great Britain and
other international markets; Bulmers in Ireland; and Tullamore Dew in a number
of markets.
Based on these plans C&C would expect operating profit growth, from continuing
operations, to be in the range of 15%-25% for 2007/08.
Maurice Pratt C&C Group CEO concluded "Magners in Great Britain has delivered
tremendous results for C&C in 2006/07. Our primary focus in 2007/08 will be to
enhance our market position in Great Britain. In addition, the Group will also
carry out a structured market test for Magners in two European markets".
A restatement of the segmental analysis showing continuing operations for the
year ended 28 February 2006, is attached.
Trading Statement -Investor and Analyst Conference Call Details
Maurice Pratt, Group Chief Executive Officer and Brendan Dwan, Group Finance
Director will host a conference call for institutional investors and analysts at
2.30pm (local Irish time) today. Dial in details are available from K Capital
Source on +353 1 631 5500 or c&cgroup@kcapitalsource.com
(i) Excluding the Snacks division which was sold in September 2006.
(ii) Continuing operations before exceptional items and amortisation
(iii) Long Alcohol Drinks
(iv) Free Cash Flow/Earnings before interest, tax, depreciation and
amortisation (before disposal)
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 wide 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: c&cgroup@kcapitalsource.com Email: phughes@drurycom.com Email:orlebar@mcomgroup.com
RESTATEMENT
OF SEGMENTAL RESULTS
FOR YEAR ENDED 28 FEBRUARY 2006.
Continuing
Reported Disposals Operations
€m €m €m
Revenue
Cider 278.4 - 278.4
Spirits & Liqueurs 68.8 - 68.8
Soft Drinks 234.9 (47.3) 187.6
Distribution 234.5 - 234.5
816.6 (47.3) 769.3
Operating Profit
Cider 85.3 85.3
Spirits & Liqueurs 16.3 16.3
Soft Drinks 17.8 (5.1) 12.7
Distribution 5.3 5.3
Profit from continuing 124.7 (5.1) 119.6
operations
Operating Profit %
Cider 30.6%
Spirits & Liqueurs 23.7%
Soft Drinks 6.8%
Distribution 2.3%
15.5%
This information is provided by RNS
The company news service from the London Stock Exchange
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