Posted on Tuesday 20 May 2014 by Ulster Business
Stephen Glancy, CEO of C&C Group
Drinks company C&C has reported a ramp up in profits after a strong performance across its businesses on the island of Ireland and Scotland.The company behind Magners, Stella Artois, Bass and Tennent's – the latter being the name under which it trades in Northern Ireland, notched up operating profits of EUR126.7m for the 12 months to the end of February, a 10.6% hike on the previous year.
Integration of the Gleeson distribution business and Scottish wholesaler Wallace Express – both recent acquisitions - helped boost trade in the Scottish and Irish markets and helped C&C move toward what it describes as a "customer centric, multi-beverage business model".
The company said it improved market share in cider sales in the Republic while it also saw growth in its sales to the independent free trade for its brands in Northern Ireland and the Republic.Sales of cider across the UK proved a tougher proposition with the market there becoming increasingly "commoditised" and while C&C's overall international business saw a 68% hike in operating profit, sales in the US struggled as the wholesale market there continued to consolidate.
Stephen Glancey, C&C Group CEO, said international markets will remain a core focus.
"A resilient, multi-beverage customer-centric model in Ireland and Scotland provides us with a strong and sustainable earning and free cash flow base. This, coupled with our balance sheet strength, allows us to capitalise on the opportunities represented by higher growth international markets through participation and exports."