C&C operating profits rise by 77%

Drinks company C&C Group said this morning its operating profits had risen by 77 per cent in the year to the end of February…

Drinks company C&C Group said this morning its operating profits had risen by 77 per cent in the year to the end of February, driven by sales of Magniers cider in the UK.

The company, which also makes Bulmers and Tullamore Dew, saw revenue growth of of 27 per cent to €981.4 million. Operating Profit grew to €212.6 million.

It announced a final proposed dividend of 15 cent per share to be paid on July 17th next. The group's full-year dividend will, therefore, amount to 27 cent per share, an increase of 80 per cent on last year.

C&C said its primary focus this year and next year was to push sales of Magners cider in Britain and Bulmers in Ireland. It is also assessing the prospects for Magners in Europe by carrying out market tests in Spain (Barcelona) and Germany (Munich). "It is expected that it will be October 2007 before any initial conclusion can be drawn as to Magners' prospects in these markets," a company statement said.

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The company sold its snacks subsidiary Tayto Crisps Limited in September last year for €59.8 million. The money was used to reduce debt. Net debt was reduced by a total of €78 million to €305 million.