The chief executive of C&C Group, Patrick McMahon, has stepped down from his position with immediate effect, following a review that revealed 'mistakes' in recent accounts.
In a statement, the Irish maker of Tennent's and Magnets said that it was making a number of accounting adjustments in relation to inventory and balance sheet items.
This has resulted in an underlying operating profit adjustments charge of €5 million, the company said.
As a result of these adjustments, the group said that there will 'clearly also be an impact' on its unaudited 2024 full-year interim results, with details set to follow later this year.
'Failures In The Group's Reporting Framework'
'In addition to accounting mistakes and errors of judgement underlying these historic issues, it is clear from the reviews undertaken that there were failures in the Group's reporting framework and that in parts of the organisation behaviours fell short of the levels of transparency demanded and required such that opportunities were missed to identify and appropriately address the relevant issues,' the group said in a statement.
The adjustments, the total value of which is €17 million (underlying plus exceptional), pertain to several items over a three-year period.
These include a €10 million charge related to inventory matters at Clonmel, a €3 million credit for goods received but not invoiced, and a €3 million credit due to the timing of the release of customer discount liabilities. Additionally, there is a €1 million charge resulting from a change in the accounting treatment of glassware.
McMahon Steps Down
McMahon held the position of chief financial officer at C&C during this period, prior to being named CEO, and 'acknowledges that the relevant shortcomings occurred at a time when he had overall responsibility for the Group's finance function,' C&C said.
'Accordingly, he has informed the Board that he will step down as CEO and as a director with immediate effect. The Board, with regret, has agreed that it would be in the best interests of the Group for Patrick to do so.'
Chairman of the board at C&C Group, Ralph Findlay, has been appointed CEO with immediate effect, with his tenure expected to last between 12 and 18 months, while the drinks firm seeks a new chief executive.
The company expects to report net revenue of €1.652 billion for financial year 2024, which would represent a 2% decrease compared to the previous year.
