FDBusiness.com

C&C Group has reported a 9.2% decline in operating profit to €115 million for the year ended 28 February 2015 from net revenue up 10.3% to €683.9 million as the Irish and UK manufacturer, marketer and distributor of branded cider, beer, wine and soft drinks battled against the tough trading environment.

C&C Group did achieve a solid performance in its core segments of Ireland and Scotland with operating profit growth of 1.5% and 1.8% respectively. However, its business in England and Wales (C&C Brands) and its North America operations both saw profits fall. A one off impairment charge of €150 million to US asset value also impacted on profits.

“Our core businesses in Ireland and Scotland, which represent 86% of operating profit, delivered modest earnings growth during the year. During the course of FY2015, we continued to make progress towards our objective of building leading brand-led distribution businesses in both of these regions. This model reinforces the sustainability of our earnings and cash generation capability which, in turn, drives our ability to create and sustain value for shareholders,” comments Stephen Glancey, chief executive of C&C Group.”

He adds: “Outside of our core segments, we have been restructuring and investing behind our market positions and brands to drive performance. During the year, we have consolidated our C&C Brands business; accelerated our product investment and development in the US; and, made exciting progress in new international markets.”