Drinks group C&C reported a fall in first-half operating profit of more than 30 per cent today with cider sales hit by poor weather and tough competition.
Operating profit for the first six months to the end of August fell 33 per cent to €67.9 million.
"The financial performance reflects a number of factors such as exceptionally poor summer weather, increased competition, and additional costs in marketing and cider manufacturing capacity," C&C Chief Executive Maurice Pratt said in a statement.
C&C said low growth in the cider market in Britain, where its Magners cider brand is sold, was expected to lead to a high single-digit percentage decline in cider revenue in the second half versus the same period last year.
"This expectation is a substantial improvement on the quarter ended 31 August 2007," it said. "Taking account of cost reduction measures already in place this should lead to a small improvement in operating margin in the cider division compared with the first half year."
Mr Pratt said margins were expected to be "somewhat higher" than in the first-half. The firm issued two profit warnings earlier this year due to lower than expected cider sales and a tougher market, which hurt its share price.
Shares in C&C, were trading 7.9 per cent lower at €5.56 by 10.35am compared with a 0.9 per cent fall on the Iseq. The stock is some way off its lifetime high of €14.03 struck at the start of this year.
Mr Pratt said the company had conducted an extensive review of its performance and market position and had taken "certain corrective steps".
"These measures are intended to restore growth in revenue and operating margin in 2008/09 and beyond," Mr Pratt said.
C&C said it would announce details in November of a "comprehensive" restructuring and cost saving plan. "The outlook suggests management are confident of reinvigorating growth through cost reduction and further marketing investment," NCB analyst Paul Meade wrote in a research note.
"The statement suggests confidence and the worst appears to be over."