Drinks group C&C said it expected earnings growth for the year, despite a poor economic climate and bad weather conditions that hit cider sales figures.
The group predicted operating profit for the full financial year would be in the range of €112 million to €118 million.
But the Irish market continued to be volatile in the first quarter of the financial year, with total volume down 1.1 per cent over the three months to May 31st. Cider volumes suffered a 5.4 per cent decline in the market, but beer rose by 29.6 per cent as the Caledonia Smooth brand went on sale in the Irish market and Tennent’s rose by 47.6 per cent.
Overall, net revenue for the Irish market was down 11.5 per cent.
The pick-up in weather at the end of May and the beginning of summer events saw volumes bounce back a little.
In the UK market, cider volumes fell by 21.6 per cent and net revenue was 25.1 per cent lower. Magners suffered a 21.8 per cent fall in volumes, while revenues were down 25.5 per cent. This was partly due to an overall dip in cider sales due to poor weather.
However, C&C said it expects volume and revenues in the Magners brand to recover as the year continued.
The drinks group’s other cider brand, Gaymers, had an equally difficult quarter, with volume falling 21.5 per cent and revenue falling 24.3 per cent.
Although volume for Tennet’s fell in the UK, net revenue rose 5.4 per cent due to better pricing.
C&C said its export business put in a good performance, with volume rising 62.9 per cent and revenue 47.4 per cent higher. The quarter saw the beginning of Tennet’s exports to new markets, including North American and Italy, with the brand accounting for 12 per cent of volume.
“Despite a challenging quarter and tough consumer backdrop, we are confident that our resilient business model and strong brand market combinations will deliver continued earnings growth for the full year and maintain our business momentum,” chief executive Stephen Glancey said in a statement.
