UPDATE 2-C&C full-year profit down 27 percent, as expected
* Guidance for 2009-10 unchanged
* Trading for first 10 weeks of new year mixed
* Shares up 6 percent
DUBLIN, May 12 (Reuters) - Irish drinks group C&C (GCC.I) met forecasts with a 27 percent drop in full-year operating profit and retained its guidance for 2009-10 despite rapid deterioration in economic conditions hitting consumer spending.
The maker of Magners cider also said on Tuesday trading for the first 10 weeks of its new year was mixed, with revenues flat year-on-year on a constant currency basis.
Shares in the company rose by six percent in early trading to 1.91 euros after its operating profit guidance for 2009-10 of 77 million euros to 82 million euros remained unchanged, together with an increased free cash flow planned for the year.
"We are in the process of aligning C&C's operating cost base with an exceptionally challenging environment," chief executive John Dunsmore said in a statement.
"Increased operating efficiency, reduced capital spend and more effective marketing investment will contribute to our financial performance in FY 2010 and to the development of an agile business which is increasingly responsive to the market."
Dunsmore was recruited in November along with two other former executives of brewer Scottish & Newcastle with the task of reviving C&C's cider sales.
In March, he announced writedowns of assets worth 141 million euros and the company said on Tuesday that the streamlining of organisation and management structure would deliver savings of 5 million euros for the full year of 2010.
IN LINE
C&C said revenue for year to end-February fell 11 percent to 514 million euros ($699 million) as underlying operating profit before exceptionals fell to 90.2 million euros, in line with previous guidance.
That compared with a 2007-08 outcome of 125 million euros, which already marked a 37 percent fall from the previous year. Continued...
