Magners on the up in the UK
C&C Group has reported an increase in pre-tax profits on the back of a 3.6% volume growth of Magners in The UK.
The Irish drinks company, has this morning reported pre-tax profits of Eu79.1m (£69.5m) for the year to the end of February, up from Eu64.1m the previous year.
Revenues for the year climbed to Eu789.7m from Eu490.8m, with Magners reporting volume growth of 4%, which reflected a 3.6% growth in the UK and 33.8% export growth.
However, Bulmers volumes fell by 2.4% in what the company described as a challenging Irish market.
During the year, the group reduced its debt from Eu359m to just Eu6m, making it "effectively debt free".
The company said that economic conditions in Great Britain and the Republic of Ireland remain "unpredictable and challenging".
It said: "From a consumer perspective the environment is negative. However, from a sector-specific viewpoint the position of C&C is perhaps more balanced than the macro economic or consumer challenges in Great Britain and the Republic of Ireland otherwise suggest.
Opportunity for growth
"Two out of our three principal territories (GB and Export) continue to offer opportunity for growth in both cider volume and value."
The group said that the UK, as the world's largest cider market, continued to grow and attract new entrants to the category.
It said that Magners now enjoys growth and momentum in both the UK and international markets and that it intends to protect the strength of the brand with incremental support.
John Dunsmore, C&C Group chief executive, said: "C&C is pleased to report a strong financial and operating performance for the period in review delivering earnings growth in line with our stated guidance. We are equally pleased to report progress against the corporate and financial objectives set at the beginning of this financial year.
"These objectives included the integration and delivery of identified synergy benefits from recently acquired businesses; building a momentum behind the Magners brand in Great Britain; developing a capital structure and free cash flow characteristics to sustain our cider ambitions; and developing the foundations for international cider growth."
