C&C Group Reports FY2016 Earnings Decline Of 10%
C&C Group has reported a decline in earnings of 10% for the 12 months ending 29 February 2016, in line with a Trading Update issued in March.
Its FY2016 results also reveal a Free Cash Flow of €126.4 million, and that the company’s marketing investment increased by 5.5% to €34.6 million – this despite the short-term pressure on earnings.
Commenting on the results, C&C Group CEO, Stephen Glancy said, "In our domestic businesses in Ireland and Scotland, we faced a range of challenges including poor weather, increased competitor dynamics and of course, the impact in Scotland of the changes to drink driving regulations."
According to the results, cider was resilient within the Irish LAD category in the last quarter of FY2016, with Bulmers rate of sale per point of distribution remaining ‘compelling’ versus its competitors.
C&C Group also noted that its ‘premium’ business saw a number of successes across FY2016, as consumer interest in brand provenance and quality grew.
In the Republic of Ireland, the Corona brand delivered underlying growth of over 30% in its first year of distribution under C&C Group, while Heverlee became the No. 1 premium lager in Northern Ireland.
"Cider is now penetrating deeper into international markets as consumers are attracted to the sweet natural taste," added Glancy.
"Magners is the original premium apple cider and we are pleased to report growth not only in the UK but across our Export business, where cider grew by 15% over the past 12 months and with momentum sustaining into the current year."
© 2016 - Checkout Magazine by Jenny Whelan.