DUBLIN (Reuters) - Irish cider maker C&C (I:GCC) warned its annual profit would fall due to poor sales in the United Kingdom in the last four months of 2014 as it pursued a failed takeover bid for pub group Spirit (L:SPRTC).
The maker of Magners and Bulmers cider said it was planning to cut costs after intensifying competition pushed net revenue down 18.2 percent in England and Wales.
Sales volumes fell 9.8 percent in the three months to November in the two regions, which accounted for around a quarter of C&C's revenues.
C&C forecast operating profit of 115 million euros (89 million pounds) in its financial year, which ends in February, down from 127 million euros in the previous year.
C&C shares were down 7.2 percent to 3.48 euros at 0845 GMT.
C&C last year launched a failed bid to buy the Spirit pub group in the hope of using its 1,200 pubs to increase its distribution network in the United Kingdom, where it has faced a number of new rivals in the cider market, including Swedish brand Kopparberg and AB InBev's (BR:ABI) Stella Cidre.
C&C said it is now considering a range of measures boost profitability in the region, including plans to significantly reduce costs and increase investment in its brands.
Group sales volumes were down 3.4 percent in Ireland and 2.4 percent in Scotland, C&C's largest markets, excluding the recently acquired Gleesons and Wallaces wholesalers.
Sales declines in the United States eased to 16.2 percent from an average of 21 percent in the first half of the year as competitive threats receded, it said.
"While the performance during the period is obviously disappointing, the improvement in the US provides some encouragement into FY16," said Goodbody analyst Liam Igoe.