C&C profits fall as drinkers cut back

8th Oct 2009 08:27

Magners cider maker C&C reported a 10.5% fall in revenues and profits during the six months to August 31 as drinkers saved money during the tough economic climate by imbibing at home rather than in bars.Revenues for the period fell to €257.5m from €287.7m and pre-tax profits dropped to €57.4m from €66.4m.Volumes of cider stayed flat, with its spirits and liqueurs operations, which include the whisky Tullamore Dew, seeing volumes falling by 15%.Volumes of Magners fell by 2% in Britain, but this was offset by gains in Northern Ireland and the rest of the world. C&C, which sells cider under the Bulmers label in the Republic of Ireland, said it was seeing 'continued off-trade expansion relative to the on-trade,' meaning that customers are tending to buy the cider from off-licenses rather than bars.Chief executive John Dunsmore said trading had become more challenging in August and September but added: 'We remain on track to deliver on the objective of stabilised volumes and a full year operating profit outcome in line with our stated guidance.'Dunsmore said that the company, which has previously said it would invest €8m in its cider brands, said it would review its marketing investment in light of recent trading and following the acquisition of the Scottish lager brand Tennent's.C&C acquired the Tennent's brand when it recently bought the Scottish and Irish operations of global brewing giant Anheuser Busch InBev.