Interim Management Statement

Interim Management Statement

C&C Group PLC

Interim Management Statement

C&C Group plc (‘C&C’ or the ‘Group’), a leading manufacturer, marketer and distributor of branded beverages in Ireland and the UK, today issues the following Interim Management Statement covering the period from 1 March 2011 to the date of this statement.

Performance for the 3 months to 31 May 2011⁽ⁱ⁾:

• Magners volume in Great Britain (GB) up 14.0% and net revenue up 10.1%
• Bulmers volume in the Republic of Ireland (ROI) up 2.7% and net revenue down (3.3%)
• Export volume growth for Magners of 32.4% and net revenue up 26.9%
• Tennent’s volume growth of 4% and net revenue up 5.9%,
• Gaymers volume decline of (22.2%) and net revenue down (15.0%),
• Re-affirming operating profit guidance in the range of €108m-€115m for the full year.

Volume & Net Revenue Analysis: Change on Prior Year

	Â	Volume	Â	Â	Net Revenue (i)
					Â
		3 Months			3 Months
Â	Â	ended 31 May 2011	Â	Â	ended 31 May 2011
Cider:
Magners Total		14.9%			11.5%
- Magners Great Britain		14.0%			10.1%
- Magners Northern Ireland		1.1%			1.1%
- Magners Export		32.4%			26.9%
Bulmers		2.7%			(3.3%)
Gaymers	Â	(22.2%)	Â	Â	(15.0%)
Total Cider		(7.2%)			(0.4%)
Bulmers/Magners Brands		10.7%			5.6%
					Â
Beer:
Tennent’s		4.0%			5.9%
3rd Party Brands	Â	18.1%	Â	Â	18.9%
Total Beer		6.9%			12.1%

^{(i) Net revenue is on a constant currency basis}

Performance Review | 3 Months to 31 May, 2011

The fine weather over a prolonged bank holiday season provided some respite from the challenging consumer and macro-economic environment in Ireland and the UK. Against this backdrop, the business delivered a robust performance in the first quarter.

Growth in the GB cider category accelerated in the period, driven by a considerable amount of promotional activity in the off trade. Magners enjoyed its fair share of this growth with net revenues up double digits.

In Export markets, the momentum in Magners continued. Volume and net revenue were up 32.4% and 26.9% respectively in the period with the US and Australia providing much of the growth.

Elsewhere in the cider portfolio there were some negatives to offset the strong Magners performance. The Bulmers brand enjoyed good volume growth but at the expense of unit revenues. Net revenue declined 3.3% in the quarter, with underlying price deflation of 6%. This compares to a run rate of 4.4% deflation in the financial year 2010/11. In Gaymers, a reduced level of activity at the lower margin end of the portfolio contributed to a 15.0% decline in net revenues.

Total cider net revenues for C&C were broadly unchanged in the quarter but with a better quality of brand mix that builds confidence in the Group’s overall cider operating margin.

The beer category also enjoyed the benefit of the more favourable trading environment. The Tennent’s brand recorded a robust performance with net revenue growth ahead of volume growth as the benefit of price increases flowed through. In ROI, good progress continues to be made with the Tennent’s brand.

Trading since 31 May 2011 and Outlook

Trading in June has been relatively weak in comparison to the prior year with poor weather in Ireland and the UK adding to the challenge of last year’s world cup comparatives.

With the first quarter impetus and despite the weaker start to the second quarter, we remain confident of delivering to the previously stated guidance of operating profit in the range of €108m-€115m for the financial year ending 29 February 2012. Should there be any sustained ‘seasonal upside’ from the first quarter’s trading, the current intention of the business is to invest further behind the Magners brand.

About C&C Group plc

C&C Group plc is a leading manufacturer, marketer and distributor of branded beverages in Ireland and the UK. C&C manufactures Bulmers, the leading Irish cider brand, Magners, the premium international cider brand, the Gaymer Cider Company range of branded and private label ciders and the Tennent’s beer brand. The Group also distributes a number of beer brands in the Scottish, Irish and Northern Irish markets, primarily for Anheuser-Busch Inbev (AB InBev).

Note regarding forward-looking statements

This announcement includes forward-looking statements, including statements concerning expectations about future financial performance, economic and market conditions, etc. These statements are neither promises nor guarantees, but are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.

Â	Â	Â	Â	Â	Â	Â
C&C Group plc	Â	Â	Â	Â	Â	Investors and Analysts
Kenny Neison Strategy Director & Head of Investor Relations   Tel: [phone] Email: [e-mail]						Mark Kenny/Jonathan Neilan FD K Capital Source   Tel: [phone] Email: c&[e-mail]
Â	Â	Â	Â	Â	Â	Â
Media | Dublin						Media | London
Paddy Hughes Drury   Tel: [phone] Email: [e-mail] Â	Â	Â	Â	Â	Â	Robert Ballantyne/Shanshan Willenbrock Cardew Group   Tel: [phone] Email: [e-mail]