Drinks and snacks group C&C has reported a stronger-than-expected performance in the first four months of its current financial year, largely due to the success of Magners cider in the UK market.

C&C chairman Tony O'Brien told shareholders the company's revenues and operating profit were "significantly ahead of its expectations".

Speaking at its annual general meeting in Dublin yesterday, Mr O'Brien said that, in addition to the success of Magners' roll-out in the UK in March, its performance also reflects Bulmers' continuing outperformance in the Irish long alcohol drinks market and the early summer weather.

"C&C's experience to date sustains our belief that Bulmers' strength and Magners' investment-led strategy provides your group with attractive and sustainable growth prospects," he told the meeting.

He added the group's expansion of its cider manufacturing capacity was proceeding to plan and said the new bottling plant came on stream in June 2006.

There had been some disruption to the supply of its soft drinks and cider to customers since late June, he said, due to a constraint on the supply of carbon dioxide to the British and Irish markets.

"While this supply constraint is impacting certain aspects of its business, C&C does not currently expect that it will have a material adverse effect on the group's overall financial performance in 2006/07," he said.

Earlier this week, C&C announced that it had entered into an agreement to dispose of its Tayto snacks business to Largo Foods, which currently manufactures the crisps under contract, for a consideration of €62.3 million. Subject to the receipt of regulatory consents, the sale is expected to be completed before the end of 2006.

The chairman said the group would use the proceeds of the sale to pay down debt. "We would like to record our appreciation for the commitment and contribution of all of those involved in our snacks business over many years," he said.

C&C will issue a first-half pre-close trading statement on August 31st.