Another blow for C&C Group

Published: 23 July, 2008

UK: C&C Group flags up yet another warning

The troubled company, which owns the Magners cider brand, said that, for the six months to the end of August, it expects its operating margin to decline and for turnover to be flat compared to last year's results.

The company said in a statement that its weak performance is down to issues including hiked-up marketing and manufacturing costs for its Magners cider brand, poor weather in Ireland and the UK and the impact of competition.

The statement added that Bulmers cider volumes in the Republic of Ireland are expected to decline by 7% in the half year, while shipments of Magners to the UK are expected to be 2% higher than last year.

The company also forecast that spirits and liqueurs shipments should increase by 8% over the same period last year. C&C's Tullamore Dew Irish whisky brand is currently experiencing double-digit growth.

Earlier this month, C&C, which owns the Magners cider brand, issued a second profit warning for the year. The company blamed the poor weather conditions and increased competition in the UK for a deterioration in cider sales volumes in the country during the second half of July.

C&C will provide guidance on its expectations for the second half and full year when it announces its interim results on October 10.

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