Latest news with #ExtendedProducerResponsibilityLevy
Irish Independent
29-05-2025
- Business
- Irish Independent
Cider maker C&C hopes for a long hot summer as shares rise and annual profits hit €77m
But the company has warned that consumer confidence in the UK and Ireland 'remains subdued' and the prospect of US tariffs 'add further uncertainty'. Revenue at the group, which also owns brands including Tennent's, Orchard Pig and Five Lamps, was flat at €1.66bn for the year ended February 28. Its pre-exceptional operating profit jumped 29pc to €77.1m however, which was also in line with analysts' forecasts. The drinks firm saw Tennent's and Bulmers secure market share gains during the year, it noted. The key summer trading period lies ahead, and tourism always helps sales In Ireland, C&C said that on-trade volumes of long alcoholic drinks were in line with last year's numbers, with value growth of 9pc that reflected pricing activity and growth. 'The market saw a shift towards stout, premium beer and ready-to-drink categories, with standard lager and cider seeing share declines,' it added. 'Positively, tourism provided a welcome tailwind to the industry, with international visitor spend estimated to have increased 13pc in the year.' In the off-trade sector, long alcoholic drink volumes fell 5pc (2pc by value). Cider category volume and value declined 6pc and 3pc respectively in the year. 'The large supermarket operators have responded with increased targeted advertising campaigns and deep discounting promotions as actions to stimulate category volume,' noted C&C. C&C also owns the Matthew Clark-Bibendum distribution business in the UK. It said the unit saw 'recovering customer momentum' in the year, with numbers of customers up 8pc. ADVERTISEMENT Despite the group's optimism for 2025, it said that total employment costs in the UK will rise in the coming year – due to the increase in Britain's national minimum wage, and in employer national insurance contributions. It said the planned Extended Producer Responsibility Levy in the UK, a tax on producers' packaging, will also have an impact. Tax and the Deposit Return Scheme that is already in effect in Ireland 'will cause further price inflation, as these costs and taxes are passed on to customers and consumers,' it said. 'With the key summer trading period ahead, we are executing our plans for the year, supporting our customers, investing in innovation and brand-building, people, and systems, whilst continuing to simplify the business and control costs,' said chief executive Roger White.
RTÉ News
28-05-2025
- Business
- RTÉ News
Operating profits at drinks group C&C fizz 28% higher
Drinks group C&C has reported higher profits and revenues for the year ended 28 February 2025 and said that current trading for the year ahead is encouraging. C&C manufactures, markets and distributes branded beer, cider, wine, spirits and soft drinks across Ireland and the UK. Its brands include Bulmers and Magners cider as well as Tennent's and Five Lamps beer. Its operating profit before exceptional items for the year jumped by 28.5% to £77.1m from £60m, while its net revenue edged up to £1.665 billion from £1.652 billion the previous year. Adjusted profits before tax for the year rose to £55.9m from £38.8m, and C&C has proposed a final dividend of 4.13 cent, up 4% on the previous year. C&C said it was seeing a "limited" tariff impact on trading and costs, adding that current trading was encouraging and it was making no change to the expected outturn for the financial year. But it noted total employment costs in the UK will grow in the coming year due to the increase in the National Minimum Wage and employer National Insurance contributions announced by the UK government in its October 2024 Budget. "The introduction of further legislative activity, such as the Extended Producer Responsibility Levy and the already introduced Deposit Return Scheme in Ireland, will cause further price inflation, as these costs and taxes are passed on to customers and consumers. "Against this backdrop, the focus on prudent management of our cost base, alongside ongoing plans to simplify the business and improve operating efficiency, combined with continued strong customer service, remain our operating priorities," it added. C&C said its Tennent's and Bulmers brands achieved market share gains during the year and maintained their market-leading positions. Its Magners brand relaunch is underway with initial Off-Trade gains, it added. Roger White, C&C's group chief executive, said the group has progressed on a number of fronts over the last year, despite the ongoing challenging macro and market backdrop. "Our two leading brands, Tennent's and Bulmers gained market share and we see future growth opportunities for both. Our Premium brand performance is encouraging, benefitting from ongoing consumer appeal for premium beer and cider which is driving growth in this segment," the CEO said. "Within Distribution, Matthew Clark Bibendum continued to deliver positive momentum, achieving consistently improved service levels, growing its customer base by 8%," he added. Mr White said that year to date trading is encouraging. "With the key summer trading period ahead, we are executing our plans for the year, supporting our customers, investing in innovation and brand-building, people, and systems, whilst continuing to simplify the business and control costs, he said. "We remain focussed on building a solid platform from which we can maximise the potential of the group. We are developing plans to grow sustainably whilst delivering on our financial targets, creating increased long-term shareholder value," he concluded.
