C&C Group saw a significant turnaround in its Irish performance in the second quarter of the year, compared to the first, according to its first half results statement (to 31 Aug) issued this morning.
The Group's LAD volume in the Irish market increased 16.8% in the second quarter compared with a decline of 11.5% in Q1, "as consumption benefited from the good summer weather", the company said.
C&C posted revenues of €80 million (excluding Gleeson) in its Irish business in H1, up 8.7% on the same period a year earlier (€73.6 million). Operating profit rose 12% to €25.2 million.
"The margin improvement was driven by a combination of cost control and reduced brand investment," it said, also noting that "a combination of an on-trade price increase and off-trade volumes that were less dependent on promotional activities benefitted [the] price mix" in its core cider business.
Its beer portfolio, led by Tennents, grew volumes by 3.6% in Ireland in the period.
On the Gleeson business, which is still subject to "ongoing integration", C&C said that "branded soft-drinks and water volumes benefited from the warm summer," which "helped offset the underperformance of the Gilbeys wine business which suffered declining volumes in line with the Irish wine market."
Overall, C&C Group posted net revenue growth of 27.8% to €336.7 million (including acquisitions) in the period.
© 2013 - Checkout Magazine by Stephen Wynne-Jones
