Dublin/London, 16 Jan - C&C Group plc today issued the following Interim Management Statement covering the period from 1 September, 2008 to the date of this statement.
Quarter to 30 November 2008
Revenue
Revenue(i) for the three months to 30 November 2008 declined by 13% compared with the same period last year. This performance reflects a decline of 19% for C&C’s Cider division and growth of 1% for Spirits & Liqueurs.
The year-on-year decline in the Cider division’s revenue for the third quarter comprised a 24% decline in Great Britain and a 17% decline in the Republic of Ireland.
The performance reflects very weak consumer demand, declining price yield, increased off-trade profile and strong competition in both markets.
Margins
Group operating margin(i) for the quarter was down by approximately three percentage points on the same period last year.
Trading since 30 November 2008
While overall revenue decline in December is in line with the quarter to 30 November 2008, margins were considerably weaker as a result of continuing competitive pressure. Performance over the seasonally weak months of January and February is expected to continue this trend. Accordingly, the Group currently expects overall Operating Profit(i) for the full year to 28 February 2009 to be c. €90 million.
Debt
C&C’s net debt at 31 December 2008 amounted to €216 million – a decrease of €37 million from 31 August 2008.
As a result of the decline in investment values, it is estimated that C&C’s pension deficit will increase from €32.3 million as of August 2008, to c. €60 million at the end of December 2008.
It is estimated that a payment of c. €20-€25 million into the Group’s pension schemes will be required before the financial year end in order to facilitate the split of the Group’s pension schemes consequent upon the sale of its soft drinks division to Britvic plc in August 2007.
In the coming months C&C will explore the options to fund the remaining deficit of €35-40 million and prepare a funding plan.
