C&C Group H1 revenues up despite 'challenging' US and UK markets

29th Oct 2014 11:31

Irish drinks group C&C increased its revenues for the full-year despite lower than expected sales from the US and UK markets.The group said the UK cider business "remains challenging" with its brand Magners underperforming during the first half of the year ended 31 August 2014.In the US, its Woodchuck brand was affected by the "disruption of new market entrants", C&C's chief executive Stephen Glancey said.The group increased its revenues to €368.1m for the full year from €336.7m in the year before.However, profit before tax dropped 2.6% to €64.3m from €66m.Earnings per share rose 22.4% from 12.5 cents to 15.3 cents.C&C proposed a dividend of 4.5 cent per share, an increase of 4.7% from the year before. It said the increase reflects a strong balance sheet.The group opened new craft breweries in Clonmel and Glasgow and acquired Gleesons and Wallaces during the period.C&C approached the board of Spirit Pub Company, but the business rejected its offer last week."Over time the combination of cash flow from branded alcohol together with excellent retail outlets have provided sustainable returns for shareholders," Glancey said.Analysts from Shore Capital said: "We expect the subdued performance and negative sentiment around the US business to weigh on the shares in the short term so we downgrade our buy recommendation to hold."