Brexit blues hit C&C profits

It says its core brands remain "resilient" in challenging conditions...

Brexit blues hit C&C profits

Bulmers / Facebook

Irish drinks company C&C has revealed the impact that the UK's decision to leave the EU has had on its business.

The company has warned that its profits are likely to fall in 2017 and that they are expected to be between €94m and €96m.

That's down from a €103.2m profit for last year - and €115m the year before.

This announcement has led to a 8% drop in its share price.

C&C describes the performance of its Bulmers, Magners and Tennent’s brands as "resilient."

Bulmers is expected to post volume growth of 3% for the full year. It's draught sales have been down - but pint bottles and longnecks covered that shortfall and provided growth. It is also starting a new major promotional push during this month.

The group warned that currency fluctuations will continue to hurt its bottom line: "The impact of currency, negative market pressures on pricing and pack/channel mix have impacted the Group’s profitability," it stated.

The company's wholesale business "stabilised in the second half of the year" but did not recover margins lost as the pound went south.

It notes that the US cider market is in decline and that, "the carrying value of the US assets will be reviewed as part of our full year-end close process."