C&C Group Plc
31 August 2007
TRADING STATEMENT
FOR THE SIX MONTHS ENDING 31 AUGUST 2007
CCR.I CCR.L
Dublin, London, 31 August, 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 six months ending 31
August 2007. Interim results, for the six months ended 31 August 2007, will be
announced on 10 October 2007.
Financial Overview
Turnover(i), for the six months to 31 August 2007, is expected to be flat
compared with the same period in 2006, while operating margin(i) is expected to
decline by approximately nine percentage points for the same period.
This performance reflects the combination of weak demand and substantially
increased marketing and manufacturing costs within the cider division and is
consistent with the guidance given in the statement issued on 31 July 2007.
Operations
Turnover in the Cider division is expected to be approximately 1% ahead of the
same period last year with sales volumes down approximately 2%. The volume
decline reflects the extremely poor weather in Ireland and Great Britain and the
impact of competition in Great Britain.
Bulmers cider volumes in the Republic of Ireland are expected to decline by
approximately 7% in the half year, while shipments of Magners to Great Britain
are expected to be 2% higher than last year.
Spirits & Liqueurs shipments are expected to increase by 8% over the same period
last year. This primarily reflects continued double digit growth for Tullamore
Dew Irish Whiskey. Overall depletions growth is estimated to be in mid single
digits.
Disposal
The sale of the Soft Drinks division and related assets was completed on 29
August 2007. The operating profit contribution to the Group from these assets in
the period is expected to be approximately €6 million - this represents a
decline on the previous year due mainly to the very poor summer weather.
Share Buyback
C&C suspended its on-market share buyback programme on 31 July 2007 and intends
to recommence this programme, utilising part of the proceeds of the Soft Drinks
division disposal, following the announcement of its interim results in October.
Second Half Outlook
C&C will provide guidance on its expectations for the second half and full year
when it announces its interim results on 10 October 2007.
Restatement
A restatement of segmental results for the six months ended 31 August 2006
showing the contribution from continuing operations and disposals is attached.
(i) Continuing operations - before exceptional items and excluding the
Snacks and Soft drinks divisions.
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
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.
RESTATEMENT OF SEGMENTAL RESULTS
FOR SIX MONTHS ENDED 31 AUGUST 2006.
Continuing
Reported Discontinued Operations
€m Operations* €m
€m
Revenue
Cider 269.5 - 269.5
Spirits & Liqueurs 36.1 36.1
Soft Drinks & Snacks 125.3 (125.3) -
Distribution 101.2 (30.2) 71.0
532.10 (155.5) 376.6
Operating Profit
Cider 90.0 90.0
Spirits & Liqueurs 9.8 9.8
Soft Drinks & Snacks 13.5 (13.5) -
Distribution 0.2 0.7 0.9
Profit for continuing operations 113.5 (12.8) 100.7
Operating Profit %
Cider 33.4
Spirits & Liqueurs 27.1
Distribution 1.3
26.7
*Soft Drinks division and related assets/Snacks division
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
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Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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