Bulmers maker C&C on track to deliver earnings growth

Drinks group C&C has said it its balance sheet remains strong and it is on track to deliver earnings growth this year.

In an interim statement issued on Thursday the Clonmel-based group reported a solid performance in the first four months of the year for its products in Ireland and Scotland.

It said however that the trading environment in England and Wales is still challenging, but is now less relevant to the group’s balance sheet.

C&C said that in the US, the group’s performance had been weak, but in line with expectations. Excluding the US, volumes in other exports markets were up into double digits for the first four months of the year.

“Our balance sheet remains strong and there have been no significant changes in the financial position of the group since publications of the annual report,” it said.

“C&C believes that the fundamentals of its core markets and its position within those markets support continued earnings growth. For the current financial year, C&C remains on track to deliver its financial objective of mid-single digit operating profit growth,” the group added.

The Bulmers maker reported sales growth for the year to the end of February of about 30 per cent to just over €620 million in May. Operating profits grew by more than 10 per cent to almost €127 million.

In a note to investors, Davy said the trading update was along expected lines.

“The move towards a multi-beverage and wholesaling model in the key domestic markets of Scotland and Ireland is starting to take shape. The evolution of the operating model in its core markets should support earnings before interest and taxes (EBIT) growth over the medium term while delivering enhanced levels of stability and visibility,” it said.