C&C profits take a Brexit hit

But Bulmers and Tennent's sales are up...

C&C profits take a Brexit hit

Image from Bulmers Facebook Page

The publicly-quoted drinks manufacturing and distribution group, C&C generates close to half its business in the UK but reports its financial performance in euros and has reported an anticipated reduction in sales and profits for the first half of the year due to the impact of sterling’s weakness and despite sales growth in its two principal brands, Bulmers and Tennents.

In the six months to the end of August, revenues and operating profit were both 8% lower at €307m and €55m respectively.

Sales of Bulmers actually rose by 6% during the key summer period and following some disappointing recent performances while Tennent sales, principally in Scotland, were 2% higher.

There's mixed news looking forward for investors. C&C continues to increase its dividend – the half year payout will rise by 5% - but chief executive, Stephen Glancy writes that the company has seen some volatility in consumer behaviour across the industry as result of Brexit and sterling weakness and he’s cautious about how this will impact on consumers in the immediate future.

"We have a business that is capable of weathering these challenges and our confidence in the medium to long term outlook is based on the strength of our key brands, our business model and leading positions in Ireland and Scotland – where fundamentals remain strong," Mr Glancy's statement continued.