Magners GB revenue returns to growth after five years
Irish cider producer C&C Group has seen revenue growth from its Magners cider brand in GB for the first time in five years.
Revenue from the brand was up 4.1% in the year to February 29, at Euro136.4 million, with an improvement in operating profit of 5.9% at Euro25.2 million.
Magners volumes were 2.8% ahead of the previous year.
C&C said in its latest financial statement that “with challenging headwinds, dampening consumer spending and significant new entrants into the market, the brand performed well across both channels of trade”.
The company also increased profits in its Gaymers operation despite revenue falling by almost a quarter.
Gaymers has been in a process of managed withdrawal from unprofitable own-label contracts and said it had also seen some volume losses in its brands as a result of “category premiumisation”.
C&C said the year to February 29 had been one of transition for Gaymer. Revenue fell by 23% to Euro113.4 million, but operating profit rose 7.5% to Euro4.3 million as margins increased from 4.8% to 6.6%. Gaymers volumes were 27.2% down on 2010/11.
C&C said that Gaymers was “now positioned to improve economic returns through better utilisation of assets and an increased focus on the wider cider portfolio”.
Revenue in the Tennent’s beer business in Scotland was also down slightly, though operating profit rose 22.5% to Euro22.3 million.
C&C said the revenue fall was a result of “the volume lost in pursuit of improved unit pricing in the off-trade”.