Current group chief financial officer Patrick McMahon has been appointed chief executive with immediate effect while chair Ralph Findlay has been appointed executive chair to support the management transition because McMahon will also retain his responsibilities as CFO until a new CFO is appointed – the process for which will commence shortly.
Findlay said: “David has informed the board that he believes that now is the right time for him to step down as CEO and to allow the business to go forward under new leadership.
“The board recognises and thanks David for his contribution to the group throughout a challenging period for our industry. As part of our ongoing succession planning, we keep internal and external candidates for all key positions under review and we are pleased to have someone with Paddy McMahon’s skillset and knowledge of the business to step into that role.”
Been a privilege
Forde commented: “It has been a privilege to lead such a great business as C&C. I am grateful to all C&C colleagues for their dedication, resilience and commitment in recent years. I wish the group all the best for the future under Ralph’s and Paddy’s strong leadership.”
Meanwhile, in a trading update, C&C Group, which manufactures, markets and distributes branded beer, cider, wine, spirits and soft drinks across the UK and Ireland, has announced it has encountered significant challenges in the implementation of an Enterprise Resource Planning (ERP) system upgrade in the Matthew Clark and Bibendum (MCB) businesses in Great Britain.
The implementation process has taken longer and been significantly more challenging and disruptive than originally envisaged, with a consequent material impact on service and profitability within MCB.
Service levels had largely returned to normal levels by the pre-close trading statement of 23 March 2023, however, continuing system implementation challenges, impacted by greater seasonal trading volume, saw a deterioration in service levels in April.
Improvement in May
An improvement through May is being achieved by investing in material additional cost and resources, ahead of a system fix being implemented to permanently restore service to normal levels.
C&C currently expects a one-off impact of about €25m (£21.7m) associated with ERP system disruption in its 2024 financial year (FY24), reflecting the cost associated with restoring service levels and lost revenue.
Excluding the impact on MCB, C&C is currently performing in line with management expectations for FY24 and the board is confident in the group’s medium and long-term strategy and prospects.
C&C re-affirmed it expects to report operating profit of €84m (£73m) and will issue FY23 full-year results on Wednesday 24 May 2023.