- Patrick McMahon became CEO of C&C Group only in May 2023
- The Dublin-based company is best known for Magners and Bulmers cider.
The head of C&C Group has resigned after making numerous accounting errors while he was chief financial officer.
Patrick McMahon only became chief executive of the Irish drinks giant in May 2023, after a three-year stint as finance chief.
Best known for producing Magners and Bulmers cider, the Dublin-based company admitted on Friday to making “accounting and judgment errors” dating back to the 2021 financial year.
Coup: C&C Group is best known for producing Magners and Bulmers cider
It has now booked €17m (£14.5m) in retrospective charges, including a €10m charge relating to inventory issues at its Clonmel cider manufacturing plant.
The company also expects to record an expense of €12 million during the previous financial year in relation to “onerous apple contracts.”
C&C Group Shares fell 7.7 per cent to 156.2p following the announcement of McMahon’s departure, making them the biggest fallers on the FTSE 250 index.
The firm said McMahon “recognises that the relevant deficiencies occurred at a time when he had overall responsibility for the group’s finance function”.
“Accordingly, he has informed the board that he will step down as CEO and director with immediate effect.”
McMahon will be replaced by Ralph Findlay, former boss of the Marston’s pub chain, who is expected to hold the role for 12 to 18 months while C&C searches for a successor.
During his two decades in charge of Marston’s, Findlay presided over the company’s dramatic transformation, including the divestment of its brewing operations and the renaming of Wolverhampton & Dudley Breweries.
C&C also published its latest annual results on Friday, which showed the company posted a pre-tax loss of £111m in the year to February, compared with a profit of £52m in the previous 12 months.
It anticipates reporting €150 million in exceptional charges for the period, which includes a goodwill impairment of €125 million.
Revenue also fell slightly, falling 2 per cent to £1.65bn, due to lower demand for Magners across the UK and a failed software upgrade to its Matthew Clark and Bibendum businesses.
However, the company noted that operations during the first quarter had been “encouraging” and should benefit from the upcoming European Football Championship, where England and Scotland compete.
“While we remain cautious about consumer prospects for the year, market dynamics indicate that consumers are looking for affordable treats, including visits to pubs and restaurants,” C&C said.
