C&C Group, the drinks producer, has this morning reported a “solid” first quarter to the end of May across its core brands.
It said that Euro 2016 had been good for trade across Ireland in June and that it anticipated a decent month for our brands.
However, it said that despite the solid start, it remained cautious on its outlook for the year.
It said: “While the longer-term economic implications of the UK referendum outcome are uncertain, the fundamentals of our brands and business model remain strong, supported by a robust balance sheet and cash conversion capability.
“We are an Irish domiciled business with a dual listing on the Irish and London Stock Exchanges. This together with our focused operating model helps to provide a degree of balance to the risks associated with the UK’s decision to leave the EU.”
It said that volume shipped by brand in the first quarter represented a “considerable improvement on the trends of last year”.
It is +9% at Bulmers, +4% at Tennent’s in Ireland, +5% in the UK and Magners is +24%, whilst exports were up by 24%.
The group said: “In Ireland, some decent weather in March and May gave the cider category an early boost and the Bulmers brand enjoyed the benefit. There is momentum in the Corona brand and our wine portfolio and boutique beer range are beginning to perform. Heverlee and Clonmel 1650 were up 67% and 65% respectively in the on-trade in Northern Ireland. The strength of the portfolio in the North, backed by a willingness to invest in the on-trade through loan finance, delivered a number of good account wins in the quarter.
“The recovery of the Magners brand in GB, evident in the second half of FY2016, continued in the first part of FY2017.”