Annual Report 2014



€620.2m increased by 30%


€126.7m before exceptional items an increase of 10.6%


20.4% down 3.6 ppts
on prior year


€145.2m at the year-end giving a leverage ratio of net debt:
ebitda of less than 1.0x


29.5 cent per share

an increase of 5.7%


5.7 cent per share

an increase of 0.95 cent delivering 14.3% growth in full year dividend to 10.0 cent per share

  • FY2014 operating profit growth of 10.6% to €126.7 million in line with stated guidance, representing a solid performance with double-digit operating profit growth from four of the Group’s five reporting segments.
  • C&C recorded a particularly strong performance in Ireland and Scotland, with the acquisition of Gleeson and the investment in Wallaces Express representing significant steps toward the development of customer centric, multi-beverage business models in these territories.
  • The evolution of the business model in core markets contributed positively to the performance of the Group’s brands. In ROI, C&C ciders improved market share, grew volume and increased revenue for the first time in seven years. In Scotland and Northern Ireland, Tennent’s and our portfolio of brands continued to deliver growth in the Independent Free Trade, achieving impressive market share, revenue growth and volume gains.
  • Stabilisation of Cider UK performance in the second half of the year. The cider category has commoditised and focus remains on developing and maintaining profitable positions in a competitive market.
  • Continuing development of the international business as a whole with operating profit up 68% in FY2014 (on a constant currency basis).
  • In the USA extensive wholesaler consolidation and business integration was successfully concluded during the year. Increased investment and new entrants fuelled high growth in the cider category but C&C volume growth was disappointingly behind the category. However, C&C remains confident in the prospects for its portfolio of authentic cider brands in the US market.
  • Progress in innovation and new product development. Caledonia Best ale, Heverlee hand crafted premium Belgian lager, Tennent’s Beer aged in Whisky Oak and Tennent’s Stout have delivered growth. Montano Italian cider also recently launched, and in Ireland Bulmers is launching Clonmel 1650, a new premium Irish lager.
  • Strong underlying cash generative capability. Net debt/EBITDA at the year-end was less than 1.0x despite an unusually high level of cash investment in acquisitions and expansion, the latter including a new cidery in Vermont and new craft breweries in Clonmel and Glasgow.
  • Proposed final dividend of 5.7 cent per share, representing full year dividend growth of 14.3% compared with last year. The increase reflects the Group’s strong balance sheet, underlying cash generation capability and commitment to deliver value for shareholders.