A SUN-kissed second quarter has helped to lift operating profits at Tennent's lager owner C&C Group by 7.9% to €71.1 million (£60.8m) in the six months to August 31.

The Dublin-based firm - whose Magners and Blackthorn ciders sponsor Celtic and Rangers - highlighted volume gains by Tennent's and ale brand Caledonia Best, as it reported net revenue growth of 27.8% to €336.7m.

C&C reaffirmed guidance on full-year earnings growth in the region of €125m to €132m for a transitional year marked by the integration of acquired businesses.

Investors responded positively to the update with shares closing up €0.13 at €4.14.

Tennent's UK, which covers the firm's business in Scotland and Northern Ireland, reported operating profits of €16.6m, up 9.2% on the same period last year.

But revenue slid by 4.6% to €109.2m as overall beer volumes fell 5% in Scotland.

Chief executive Stephen Glancey said Tennent's lager had outperformed the market to grow its share of the independent free trade in Scotland by 2%, with distribution helped by C&C extending its trade lending book by a net €8.7m.

Mr Glancey noted Caledonia Best had grown 39.4% year on year to account for 12% of the volume of ale sold, "making it the UK's fastest-growing smooth ale".

And he said reported progress by Magners amid continuing challenges in the UK cider category. Magners, the UK's leading "modern" cider by value and volume, increased its share of the premium cider in Scotland to 23% on the back of new brand investment.

Mr Glancey also highlighted the early impact made by Heverlee, a handcrafted Belgian beer, which is now pouring in 200 outlets in Scotland and Northern Ireland.

The Tennent's boss described trading conditions in Scotland as "reasonably good". He said: "We are outperforming the market. Trading conditions are fine.

"They are challenging in some areas, in other areas they are perfectly good. We have no complaints.

"The summer helped, but it does not help that much to be honest. T in the Park was a phenomenal success this year because of the warm weather. We are happy with trading conditions."

C&C said it continued to make progress on its strategy to become a multi-beverage operation.

In addition to Heverlee, it introduced and a new on-trade wine portfolio in Scotland, while Tennent's stout and whisky oak beer were launched in overseas markers.

The first half saw Tennent's UK, acquired a 50% stake in Scots drinks wholesaler Wallaces Express in March, which came after it acquired the Gleeson wholesale business in Ireland.

Mr Glancey expanded on C&C's plans to tap into the UK's growing craft ale market.

It has entered into a 50/50 joint venture with Alloa-based Williams Bros to build a new craft brewery and brewing centre of excellence in the Drygate area of Glasgow, next to its Wellpark site.

The venture will be led by Scott Williams, co-owner of Williams Bros, who has been named as the managing director of the Drygate Brewing Company. C&C is also building a new craft brewery in Clonmel, Ireland.

Mr Glancey, who declined to specify how much C&C would invest in the Drygate venture, said: "The reason we are investing in the craft brewery is that we are looking to participate in the wave of craft [ale] in Scotland.

"It is a great space. You see what the guys at Innis & Gunn have done, and Brewdog, who have done a brilliant job both domestically and internationally.

"From our shareholder perspective we would like to participate in that."