Red faces at C&C after cider group gets its figures wrong
THE new management team at cider company C&C Group suffered a blow to its credibility yesterday when it announced a correction to a positive trading statement it issued just four days ago.
C&C said last week that revenue for the four months to end-June was up three per cent on the year due to good weather and lower prices, helped by a three per cent rise in cider revenue.
But the company said yesterday that total revenue was actually five per cent lower – and cider revenue fell six per cent.
A reported 16 per cent drop in revenue at the spirits and liqueurs division was corrected to a 22 per cent fall.
Shares in C&C fell around 10 per cent, even though the group reiterated its guidance on full-year earnings.
C&C chief executive John Dunsmore, the former head of Scottish &Newcastle, will be disappointed by the error. He joined the group in November last year after it issued a series of poor trading statements.
“This has completely overshadowed last week’s positive trading statement,” said an analyst from Dublin who declined to be named. “It’s a shame for the new management, which has got off to a decent-ish start overall,” he added.