Irish drinks group C&C said it expects to return to earnings growth this year, but warned the Irish and UK markets remained "challenging".
The group's operating profit for the year to the end of February was 11 per cent down at €89.5 million, with acquisitions contributing €6.3 million. Overall revenue was up 16.4 per cent to €568.8 million, but underlying revenue fell 8.6 per cent to €446.4 million.
Adjusted diluted earnings per share fell 10.6 per cent to 22.7 cent.
Cider volumes rose 5.9 per cent year on year, mainly due to the acquisition of the Gaymers cider business, which was completed in January. When this business was excluded from the results, cider volumes declined 2.4 per cent compared to last year. The decline is mainly due to a 2.8 per cent fall in Bulmers volumes in Ireland, and a 4.9 per cent in Magners in the UK, which was partially offset by 9.6 per cent growth in the brand in the rest of the world.
"This is broadly consistent with the group's objective to stabilise volumes given the 14 per cent decline in volumes recorded in the prior financial year," the company said in a statement.
The company said there were signs of stabilisation in the GB cider market, with the rate of decline in the brand's volume slowing in the two months to April 30th 2010.
Revenue for cider in Ireland fell 8.2 per cent to €153 million, and operating profit was down 2.2 per cent to €44.3 million. Part of the revenue decline has been attributed to falling prices, with off-trade volumes rising and Bulmers implementing a 10 per cent wholesale price reduction for pint bottles in the on trade announced in June 2009.
C&C also completed the acquisition of the Irish, Northern Irish and Scottish assets of AB InBev for €216.5 million.
"We are pleased to report an operating profit performance modestly ahead of stated guidance," said chief executive John Dunsmore.
"Our intention to focus strategically on cider and long alcohol drinks is clarified further by our agreement to sell the group's spirits and liqueurs business for a total consideration of €300 million."