Annual Report 2014

operations REVIEW

Third Party Brands UK

Third Party Brands UK

Constant Currency(i)

FY2014

FY2013

Change

€m

€m

%

Revenue

122.1

112.2

8.8%

Net revenue

89.4

86.7

3.1%

- Price /mix impact

(7.6%)

- Volume impact

10.7%

Operating profit

7.2

4.9

46.9%

Operating margin (Net revenue)

8.1%

5.7%

Volume – (kHL)

964

871

10.7%

Third Party Brands UK

This segment relates to the manufacturing and distribution of third party products. Volumes increased by 10.7% to 964khl. Operating profit for the period increased to €7.2 million (on a constant currency basis), taking the margin on this business up to 8.1%. Our route to market capability and the strength of our local brands is attracting brand owners to partner with C&C in Scotland and Ireland.

Volume growth on agency brands was 6.3% due to a strong performance in the Scotland and Northern Ireland independent free trade. This result also includes the International Wine Services (IWS) division, which is now supplying a range of wines and spirits brands into the on-trade in the UK.

Notes to the Operations Review

(i) On a constant currency basis; constant currency calculation is set out on this page.

(ii) Per Nielsen/CGA

(iii) Operating profit and profit for the year attributable to equity shareholders is before exceptional items. The prior year operating profit has been restated on adoption by the Group of revised IAS 19 Employee Benefits; please see note 1 to the financial statements.