C&C slumps as CEO steps down after €25m hit from MCB unit

Drinks company C&C Group said chief executive David Forde had decided to step down as it also announced a €25m hit from problems implementing a system upgrade in its Matthew Clark and Bibendum (MCB) businesses in the UK.

The company, which owns the Magners cider brand and distributes China's Tsingtao beer, on Friday said Forde would be replaced by chief financial officer Patrick McMahon.

C&C, which makes, markets and distributes branded beer, cider, wine, spirits and soft drinks across the UK and Ireland, said it had “encountered significant challenges” in the Enterprise Resource Planning system changes at MCB.

“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,” it added.

“There is expected to be a consequential increase in working capital in full-year 2024, however leverage is expected to remain within the group’s stated range of 1.5x to 2.0x.”

Excluding the impact on MCB, C&C said it was currently performing in line with management expectations for the full year and reaffirmed guidance of operating profit of €84m and a reinstatement of dividend payments to shareholders for the 2023 fiscal year.

Reporting by Frank Prenesti for Sharecast.com