Tennent’s owner posts loss

Tennents owners C&C has posted a pretax loss of €62.9 million after Scotland’s thirst for its drinks took a hit.

The results published by the Irish drinks group for year ending February 2017 compared with a pre-tax profit of €56.3m in the previous year.

Revenues came in at €818.1m, down from €946.9m the previous year.

The results included an impairment charge of €129.4m related to its US business, where sales of cider have softened.

The group, which owns Bulmers, Magners and Tennent’s lager, said that while trading conditions remained “tough”, it had invested in and delivered volume growth across its core brands.

In Scotland, sales fell by €11.6m to €285m compared with the previous year, and volumes were marginally lower.

“While trading remained tough, we invested in and delivered volume growth across our core brands; completed a major rationalisation of our production footprint; drove efficiencies across the business; continued to grow our premium portfolio and export business; and secured an important new longterm distribution arrangement with AB InBev,” chief executive Stephen Glancey said.

“After this year of consolidation, we are in materially better shape to meet the ongoing challenges and opportunities within our industry.

“The impact of the devaluation of sterling following the Brexit vote had a material (€8m) negative impact on the group’s reported numbers.

“However, on a constant currency basis, the group returned to operating profit growth in the second half and was flat year-on-year at €95m.

“The results reflect the increased investment behind our core brands, which returned to volume growth of 2.6% and the €15m efficiency benefits arising from our production rationalisation programme.”