C&C Group, maker of Magners cider, predicted “some improvement” in operating margins this year as it reported a 13 per cent rise in net profit, as a gain from the disposal of its soft drinks unit compensated for a steep drop in cider sales.

Operating profit fell 37 per cent to €109.6m ($169.7m, £86.9m) as cider sales were hit by poor weather last summer.

Net income rose to €234.9m from €208m a year ago, after the sale of C&C’s soft drinks business to Britvic for €246.6m.

Dublin-based C&C said cider sales fell 11 per cent even as the group’s investment in marketing rose 41 per cent to €68m.

C&C attributed the fall in operating profit to a decline in sales volumes in the cider division; increased marketing spending; and the costs associated with greater cider manufacturing capacity.

Performance of the cider division so far this financial year in Ireland and Britain reflected “weak market conditions related to the combination of low consumer confidence and poor spring weather”.

Operating margins in the cider business fell 11.7 percentage points.

Revenue growth was expected from the second quarter as marketing initiatives in the UK “become effective and as comparisons track a weak year ago”.

Magners was launched in England in 2005 and did well in the hot summer of the following year, when the England team notched up some initial successes in pursuing the football World Cup.

C&C then doubled planned capacity at its apple crushing and fermenting factory in County Tipperary.

However, the company was forced to trim those plans after a poor summer, unveiling in November a cost cutting, resulting in the loss of 150 jobs.

The programme, which was completed in February, should deliver €10m in savings for the full year, C&C said.

C&C’s shares, which have lost 58 per cent of their value over the past 18 months, added €0.20, or 4.3 per cent, to €4.84.