Drinks group C&C said operating profit rose in the six months to August 31st, but revenue fell as the company faced challenging markets in the UK and Ireland.

Operating profit was 7.8 per cent higher year on year, reaching €67.4 million for the six month. Overall revenue declined by 9.3 per cent to €399.3 million, and net revenue was 7.3 per cent lower compared with a year earlier.

The company is battling low consumer confidence levels in the UK and Ireland, and also had to contend with poor weather in its second quarter.

Revenues for all its main brands fell over the six month period, but C&C chief executive John Dunsmore was upbeat about the results, describing them as "robust".

"The underlying strength of our brands and stability of our business model is evident in the continued delivery of steady growth in earnings, dividends and strong cash flow in difficult trading conditions," he said.

"We remain confident of meeting the previously stated guidance of operating profit in the range of €108 million to €115 million for the full year."

Adjusted diluted earnings per share rose by 7.1 per cent to 16.5 cent for the period.

Despite a decline of 1.6 per cent in revenue, volume in the Magners brand rose by 4.9 per cent, growing by 2.9 per cent Britain and 22.7 per cent in export markets. In the British market, the brand faced increased competition, poor summer weather and the effect of the World Cup in the same period of 2010, but C&C said it put in a "resilient performance".

However, Bulmers volume fell 3.5 per cent, with C&C citing a challenging Irish market. Revenues for the brand were 8.4 per cent lower year on year.

Net revenue from Gaymers was down by 22 per cent, with volumes 26.7 per cent lower as the brand shed poor margin business.

Meanwhile, the Tennent's brand saw significant margin improvement, and grew its operating profit contribution over the period.