C&C Group, the owner of brands such as Magners and Tennent’s, is facing a €25m hit from problems implementing a business management software upgrade in its Matthew Clark and Bibendum (MCB) businesses in the UK.
The Irish firm’s share price fell over 15% this morning after it admitted that the implementation of the Enterprise Resource Planning (ERP) system was taking longer than expected and had been more disruptive than originally envisaged, with it set to impact the unit’s profitability.
Excluding the troubles with MCB, C&C said it was currently performing in line with management expectations for the full year. It reaffirmed its guidance of operating profit of €84m and reinstatement of dividend payments to shareholders for the 2023 fiscal year.
Meanwhile, the company also announced that its Chief Executive, David Forde, was stepping down after almost three years in the role. The group’s finance chief Patrick McMahon is taking over with immediate effect.
Chairman Ralph Findlay has been appointed Executive Chair to support the management transition, as McMahon will also retain his responsibilities as CFO until a replacement is found.
“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,” said Findlay.
“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.”
