Home market a drag on growth at Magners maker C&C

18th May 2011 16:43

Magners cider maker C&C Group said that while things are a bit flat in its home market of Ireland, its volumes shipped in Great Britain are growing faster than the cider category as a whole."The UK, as the world's largest cider market, continues to grow and attract new entrants to the category. Magners now enjoys growth and momentum in both the UK and international markets. We intend to protect the strength of the brand with incremental support," vowed C&C's chief executive, John Dunsmore.Revenue in the year to 28 February surged 60.9% to €789.7m from €490.9m the year before, thanks to a full year contribution from acquired businesses.The group's original cider business saw net revenue slide 5.7% to €241.3m from €255.8m the previous year.Earnings before interest and tax (EBIT) and one-off items jumped 34.4% to €100.5m from €74.8m. The original cider business saw EBIT edge up 2.9% to €71.1m from €69.1m the year before.Profit before tax and exceptional items climbed to €91.1m from €67.6m a year earlier. Exceptional charges this time round rose to €12.0m from €3.5m the year before.Net debt during the reporting period was reduced by €359m to €6m. Basic earnings per share improved to 22 cents from 18.2 cents in the preceding year.A final dividend of 3.3 cents has been proposed, up 10% year on year, taking the full year dividend to 6.6 cents.The company has issued an EBIT guidance range for the current fiscal year of €108m - €115m, versus EBIT €100.5m on a like for like basis for the fiscal year just finished. "While we have not assumed any pick up in consumer spend within the next twelve months, the shape of our business today should sustain earnings growth," Dunsmore said.---jh