Tennent’s owner C&C Group has admitted that the result of the EU referendum has left it ‘cautious’ on its outlook.
In a trading statement to the stockmarket, it said that the result of the referendum brought ‘uncertainty, volatility and a lack of visibility’.
C&C went on to say that its Bulmers, Magners and Tennent’s brands were strong in their core markets, and its growing export business was largely unaffected by the UK decision to leave the EU.
It did, however, admit that because almost 50% of profits denominated in Sterling and were reported in Euros, it was exposed to the translation impact of a devalued pound.
“At current levels, if sustained, currency movements have the potential to undo the earnings benefit from both cost reduction activity and the steady progress made in trading year-to-date”, the statement said.
The manufacturer said that although it had a very challenging year in 2015, the on-trade in Scotland was experiencing a more stable start to 2016. It also said that a key area of focus for the remained of 2016 was recovering some of the wholesale aspect of its business.