This comes despite a despite a 10.5% fall in overall volumes for C&C Group and 4.8% dip in net revenues to Euro 480m for the year to 29 February was Euro480m. However, EBITDA increased 6.7% to Euro131.5m and operating profit was up 9% to Euro111.2m.
In Britain, net revenue from Magners grew 0.7% on volumes up 2.8%. C&C said: “Overall it was a positive year for the Magners brand with revenues showing positive growth for the first time in five years. With challenging economic headwinds, dampening consumer spending and significant new entrants into the market, the brand performed well across both channels of trade.”
C&C said that in the on-trade, continued growth of Magners Golden Draught and Magners Pear, which is said is now the number one pear cider in Britain, provided “some relief against further volume decline for packaged Original, for which the competition for fridge space remains a challenge”.
“Innovation continues with three new flavours being launched under the Magners Specials range in the second half of the year.”
C&C said it was a “transitional year” for Gaymers in Britain, with volumes and net revenues down -27.2% and 22.1% respectively “as the group sought to exit unprofitable own-label contracts during the year”. “Some of the brands within the Gaymers portfolio also suffered volume losses as a direct consequence of category premiumisation.”
“Despite the volume declines, operating margins improved by 1.8ppts to 6.6% due to the stronger economics behind the remaining volume. Operating profit increased by 7.5% to €4.3 million for the year. The repositioned Gaymers business is now positioned to improve economic returns through better utilisation of assets and an increased focus on the wider cider portfolio.”
Tennent’s, C&C’s Scottish beer business, saw revenues decline 3.2% to Euro216.8m on volumes down 8.8%. Despite this, C&C said the business delivered a “string set of numbers”, with operating margins up 22.3%. Net revenues fell 1.9% “as a consequence of the volume lost in pursuit of improved unit pricing in the off-trade”.