C&C Group has reported a return to volume growth for Magners in the 12 months to 28 February.
The group this morning updated the market saying that despite weather-related disruption, trading and cash generation was broadly in line with management expectations
Group operating profit is anticipated to be around €86m for the full year, with Admiral Taverns contributing an additional €1.1m to group earnings
C&C said its expanded distribution agreement with AB InBev for its cider portfolio in the UK gathered momentum in the second half. Magners was +9% in the second half (H1: -6%) benefitting from the launch of Magners Dark Fruit, increased participation in major retailers’ Christmas promotions and incremental on-trade and wholesale distribution. Magners will post flat volumes for the full year FY18 (FY17: +13%) against a GB cider market that was also flat2.
On the outlook, the group said: “The performance of our Scottish businesses and our growing super-premium portfolio has been encouraging in FY18 and both are well positioned to deliver further value growth in FY19. The introduction of minimum unit pricing of alcohol in Scotland this year may result in some short-term market disruption, but longer term will bring value to the category. While competitive pressures remain in Ireland, we expect performance to improve next year. In the UK, our strengthened route-to-market platforms of Admiral Taverns and AB InBev are now well-embedded. The outlook for the UK high street and consumer spending remains challenging but our brands and the predominantly wet-led, community pubs we serve are proving resilient.”
