Irish group says trading below expectations
Tennent’s sales soar in Europe, but C&C warns on profits
The Dublin-based cider maker which owns Scotland’s biggest brewer counted the cost of a failed takeover bid for British pubs group Spirit and also saw lower sales in England where it is now expected to make significant cost cuts.
In an interim management statement, C&C forecast that its operating profits would come to €115 million (£89m) for the year to February, against €127m in the previous year.
The company, whose other brands include Magners cider, also said that cider volumes in the UK were down 9.8% in the three months to the end of November, with net revenue down 18.2% due to intensified competition.
In Scotland, volumes, excluding Wallaces, were down 2.4 per cent. Better news included a 62% rise in exports of Tennent’s to Europe.
In the US, volumes fell by 16% which was an improvement on the first half.