The owner of Tennent’s Lager is predicting a fall in annual profits despite a “resilient” performance for the brand.
Irish drinks group C&C, which also owns the Bulmers and Magners ciders, forecast an operating profit for the current year of about €94 million (£82m) to €96m – down from the figure of €103.2m posted for the year to February 2016.
C&C said the main reason for the decline was the fall in the value of sterling, while investment in its brands offset its cost-reduction efforts.
Although the Dublin-based firm said in a trading update that Tennent’s volumes would likely be flat for the financial year that ended on 28 February, that would mark a “significant” improvement on the 4 per cent fall reported for 2016.
It also flagged a “growing share in the key independent free trade channel” and said that Glasgow-based Tennent’s had outperformed the overall UK beer market, which was down 1 per cent.
C&C is due to publish its annual results on 17 May.