C&C, the Clonmel-based maker of Magners and Bulmers cider, recorded an operating profit of €69.2 million for the first half of its fiscal year, down 2.7 per cent on the same period a year earlier.

The group, which is mulling a near €1 billion bid for the Spirit Pub Company in Britain, said net revenue rose 9.3 per cent to €368.1 million during the six months under review. Earnings before interest, taxes, depreciation, and amortization (ebitda) totalled €82 million, a decline of 2.2 per cent compared to the same half last year.

Chief executive Stephen Glancey said that the group's businesses in Ireland and Scotland, which represent 86 per cent of operating profit, had been strong. However, it said this was offset by challenging market conditions in the UK and US.

“The overall UK cider market remains challenging. Magners underperformend the market in the first half and we saw only modest improvement in our Shepton Mallet division in volume and value. While profit contribution is small in the context of the group, management are evaluating internally the optimal structure of the business in England and Wales, “ said Mr Glancey.

“In the US, performance remains below expectation and the Woodchuck brand has been further impacted by the disruption of new market entrants,” he added.

The group said its export performance across Europe, Asia and Canada had been encouraging. Excluding Australia, Magners volumes grew by 18.6 per cent over the first half, while Tennent’s export volumes were up 12.9 per cent.

C&C said that it was unable to provide new operating profit guidance given the ongoing situation with Spirit.

The company had an offer for Spirit rejected last week, but said on Wednesday it believed that a deal with the group would materially enhance its commerical interests.

The group is proposing an interim dividend of 4.5 cent per share, representing 4.7 per cent growth on last year.