Dublin, May 12 - Irish drinks group C&C met forecasts with a 27 percent drop in full-year operating profit, blaming the impact on consumer spending of the rapid deterioration in economic conditions.
C&C, which also makes Tullamore Dew Irish Whiskey and Irish Mist liqueur, also said on Tuesday trading for the first 10 weeks of its new year was mixed, with revenues flat year-on-year on a constant currency basis.
The maker of Magners cider said revenue for year to end-February fell 11 percent to 514 million euros ($699 million) as underlying operating profit before exceptionals fell to 90.2 million, in line with previous guidance.
That compared with a 2007-08 outcome of 125 million euros, which already marked a 37 percent fall from the previous year. C&C said writedowns of assets worth 141 million euros announced in March and aimed at streamlining organisation and management structure would deliver savings of 5 million euros for the full year of 2010.
Operating profit guidance for 2009-10 of 77-82 million euros remained unchanged, while increased free cash flow was planned for the year, it said.
"We are in the process of aligning C&C's operating cost base with an exceptionally challenging environment," chief executive John Dunsmore said in a statement.
"Increased operating efficiency, reduced capital spend and more effective marketing investment will contribute to our financial performance in FY2010 and to the development of an agile business which is increasingly responsive to the market."