The smoking ban has not affected C&C's performance to date, but the company has warned that it could affect sales in the winter.
In its first trading statement since it began trading as a publicly-quoted company, the drinks and snacks group has signalled a better-than-expected performance in the six months to the end of August.
The group, which has the Bulmers cider and Tayto crisps brands, said it expects turnover to increase by about 4 per cent in that period and that its profit margins will remain broadly unchanged.
C&C said its three divisions - alcohol, international spirits and liqueurs, and soft drinks and snacks - had performed broadly in line with its expectations. "This represents a creditable performance in light of the impact of the ban on smoking in the workplace and mixed summer weather," the statement said.
It was positively received by analysts but they remained concerned about the longer-term impact on C&C's business as a result of the smoking ban, suggesting sales will be affected in the winter months. C&C shares fell 11 cents in Dublin to close at €2.45 yesterday.
C&C stated that the smoking ban, which came into effect at the end of March, contributed to the estimated 2 per cent overall decline in the long alcohol drinks market and said that the full-year financial impact of the ban is dependent on consumer behaviour over the winter.
Sales volume of the division's principal brand, Bulmers, is expected to show growth of about 4 per cent in the half year. The change in the timing of the annual price increase and the associated trade sell-in from February to May boosted the performance comparison, with the group estimating underlying growth of about 2 per cent.
Its export cider brand, Magners, continues to achieve strong growth in volumes and has increased market share in Northern Ireland. It said that its performance in Scotland to date is encouraging.
Earlier this year C&C re-launched its Carolans liquer and said that it and Tullamore Dew had achieved strong shipment growth in the six months.
It said the currency impact of the weaker US and Canadian dollar on the group's operating profit will amount to €6.8 million in the full year compared to last year. About one-third of this cost arises in the half year to August.
In its soft drinks and snacks division C&C said that continued strong growth in bottled water and its energy and sports drinks resulted in an overall flat soft drinks market. The more profitable licensed trade market declined by approximately 8 per cent, it said.
The snack market is expected to be flat in the period although C&C said it benefited from its focus on profitable volume in the grocery trade and the growth of its Club Energise drink and the successful launch of the Tayto Honest range of healthier snacks.
