Dublin, July 11 (Reuters) - Irish drinks group C&C said the weaker UK and Irish economies and poor weather had caused a decline in its cider sales which were not likely to recover fully in the important summer months.

C&C, which makes Magners cider, said today that group revenue fell 8% in the four months to the end of June compared to a year ago and sales in the half year to August 31 were unlikely to match 2007.

"A weak trading performance in June together with continuing unsettled weather and a deteriorating economic backdrop in C&C's principal markets makes the outlook uncertain," C&C said in a statement ahead of its annual shareholders' meeting.

C&C, which also sells Bulmers cider in Ireland and makes Irish Mist liqueur, said cost cutting had helped improve margins, however, which would offset the impact of declining sales on operating profit.

C&C said cider revenue dropped 10% in the four months to end-June but sales of spirits and liqueurs grew by 3%.

Last year, wet weather in the summer, when cider is usually a popular drink at barbecues and the like, and weak Christmas sales hit C&C's earnings.

Its shares have lost about 80% of their value since a peak of around €14 in early 2007. On Friday shares in C&C traded 4.4% lower by at €2.60.

"Magners Draught was launched in May and after a slow start, due to initial equipment supply difficulties, is now progressing well," C&C said.

Davy analyst John O'Reilly said the second half of the year could prove particularly challenging for the group, even compared with the low base of 2007.