Raising a glass to C&C profit

IRISH drinks group C&C said yesterday that improved sales of its Magners cider in the UK and a solid performance from the Tennent's lager business in Glasgow will help it meet its full-year profit guidance.

Despite continued difficulties in its home market - where Ireland's economic woes have battered consumer spending - the company said it would meet operating profit forecasts of €102-106 million (85.8-89.2m) for the year to 28 February. The group added that the impact of severe weather on pub sales during December was partially offset by a strong rise in UK off-trade sales of Magners.

Chief executive John Dunsmore has been rebuilding its market share since competitors began knocking Magners from its perch as the UK's pre-eminent bottled cider in 2008. The group yesterday hailed its continued recovery as volume sales continued to rise during the three months to the end of November.

C&C said trading in the Republic of Ireland, where its flagship cider is sold under the Bulmers brand, remained "challenging and unpredictable". Although volume sales of Bulmers rose by 2.4 per cent, revenues during the quarter eased by 4.1 per cent.

In the UK, where C&C generates about two-thirds of its profits, volume sales of Magners rose 4.8 per cent during the quarter. More encouragingly, the decline in revenues slowed to 0.3 per cent, compared to 5.8 per cent at the half-year.

C&C said Tennent's, which employs 300 at the Wellpark Brewery in Glasgow, was continuing to build upon the solid performance reported at the half-year. Volume sales into the Scottish on-trade market are "trending ahead" of the lager category, while unit retail prices continue to improve in off-trade.