Drinks and snacks group C&C said today it expected a moderate rise in earnings for the full year following a first half in which it performed above its own expectations.
C&C, which listed on the Dublin and London stock exchanges last year, said in a statement that operating margins for the first half would be broadly unchanged, while turnover for the six months to August 31st would be up around 8 percent.
It said the performance largely reflected strong growth in its cider division, where turnover was up more than 25 per cent. Sales volume in its cider brand Bulmers was expected to show growth of 8 percent, C&C said, while sales were seen doubling for its Magners cider brand, which has been successfully marketed in Britain.
This strength was likely to continue into the second half, it said. Shares in C&C, which have gained more than 70 per cent since the firm came to the market last May, were up 3.3 per cent at €4.45 euros by 8:30am in Dublin.
The company, whose other brands include Tayto crisps, Ballygowan mineral water and Club drinks, said trading conditions in its soft drinks and snacks division had been difficult as volume fell in fizzy drinks and snacks and margins came under pressure in a growing bottled water market.
These trends were likely to continue into the second half, it said, adding there could be some shortfall in its international spirits and liqueur unit later in the year due to distribution changes.
C&C said in July the acquisition of Allied Domecq by Pernod-Ricard would force it to seek other international distribution channels for its brands, which also include Tullamore Dew whiskey and Carolans Cream.