C&C Group Delivers Stable Trading Performance In Latest FY Results
After a challenging FY2016, C&C Group’s key markets and trading performance was stable over the course of this year, according to its financial Final Year results that it posted today (17 May). It...
After a challenging FY2016, C&C Group’s key markets and trading performance was stable over the course of this year, according to its financial Final Year results that it posted today (17 May).
It attributed this to the fact that it returned it's three key brands to volume growth of +2.6%, successfully completed a major rationalisation programme and continued to grow it premium portfolio and export business.
Stephen Glancey, C&C Group CEO, commented: “FY2017 has been a period of significant activity for the Group. While trading remained tough, we invested in and delivered volume growth across our core brands; completed a major rationalisation of our production foot print; drove efficiencies across the business; continued to grow our Premium portfolio and Export business; and secured an important new long-term distribution arrangement with AB InBev. After this year of consolidation, we are in materially better shape to meet the ongoing challenges and opportunities within our industry.
It also outlined that during the year 'it up-weighted investment' in its key brand assets of Magners, Bulmers and Tennent’s, returning them to volume growth in their key markets. In Ireland Bulmers returned to +3% volume growth + for the year.
"The impact of the devaluation of sterling following the Brexit vote had a material (€8 million) negative impact on the Group’s reported numbers. However, on a constant currency basis, the Group returned to operating profit growth in the second half and was flat year-on-year at €95 million." He added.
Direct brand marketing across its three key brands rose to 9.5% of net sales value, with a further 4.0% invested in new founts.
"The results reflect the increased investment behind our core brands, which returned to volume growth of 2.6% and the €15 million efficiency benefits arising from our production rationalisation programme." Clancey added.
Allied to this, the Group made further progress during the year in growing and developing its portfolio of premium and craft beers and ciders which includes Chaplin & Cork’s and Heverlee, as well as its local craft businesses Five Lamps, Dowds Lane, Drygate and Whitewater grew volume by 60%.
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