When it comes to hype, Maurice Pratt and C&C would give Eddie O'Sullivan and his underperforming rugby squad a run for their money.
On Wednesday, the cider maker announced a 33 per cent drop in first-half operating profit and said cider revenues would fall by a high single-digit figure in the second half of the year.
Sales of Magners in Britain have slowed due to poor weather and those cads at Scottish & Newcastle launching a successful copycat ad campaign. Investors dived for cover. The share price fell by 11.7 per cent on Wednesday to €5.32. It was €11.60 just 12 months ago.
Pratt can't be blamed for the wet summer, but shareholders are entitled to ask why €115 million was spent on increasing capacity at the Clonmel plant. And why was C&C buying back its own shares this summer at up to €11.92 apiece, when management must have known that there was bad news coming?
On Wednesday, Pratt couldn't even provide clarity on C&C's plans for a cost-reduction programme or its share buyback scheme. What's he waiting for? We wonder if the €1.16 million in executive bonuses paid last year will be part of the cull.
Investors should have feared the worst when cutprice boxes of Magners began appearing in Tesco stores around Ireland this summer. This is supposed to be Bulmers' (C&C's other cider brand) patch. Needs must.
O'Sullivan went to France with a new four-year contract from the IRFU in his locker. Maurice Pratt must envy him.
