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Ireland: C&C Sees 2007/2008 Operating Profit Up 15 to 25 Pct

Source: Reuters
28/02/2007

Dublin, Feb. 28 - Irish drinks group C&C expects to post a rise in turnover from continuing operations of about 25 percent for the business year just ended and operating profit in the coming year should rise 15 to 25 percent.

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"Our primary focus in 2007/08 will be to enhance our market position in Great Britain," Chief Executive Maurice Pratt said of C&C's Magners cider brand in a trading statement on Wednesday.

"In addition, the group will also carry out a structured market test for Magners in two European markets."

For the year just ended, C&C said it expected to report a rise in turnover for its fast-growing cider division of more than 80 percent when it posts full-year results on May 9.

Volume sales of its established Irish cider brand, Bulmers, rose by about 5 percent in the year to the end of February while its newer international Magners label, which is currently only on sale in Britain, soared 225 percent.

That would mean a rise in overall group turnover of about 25 percent, the company said.

Analysts expect C&C to report full-year turnover of 981.6 million euros ($1.30 billion), according to the average of 9 forecasts on Reuters Estimates.

That would be 20 percent higher than the 816.6 million euros posted the year before but 27.6 percent higher than the company's restated 769.3 million figure that excludes the impact of disposals over the last year.

Wednesday's statement will be scrutinised carefully by investors after shares in the company slid almost 11 percent on Jan. 11 amid fears of weaker winter sales of Magners.

Shares in C&C, which hit a life-time high of 14.03 euros at the start of the year, have yet to recover lost ground but are still trading at more than five times their value at the time of the company's 2004 stock market debut.



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