Maurice Pratt is to resign as chief executive of drinks group C&C, which makes Bulmers and Magners cider. He had held the position for seven years.
Mr Pratt told the board he had decided to quit because the strategy he had followed over the past two years had not met expectations. He will continue to manage the business until a new chief executive is appointed.
'Despite our best efforts we have not achieved our ambitions for the business,' he said. 'As chief executive I have to be accountable and take responsibility.'
Mr Pratt's decision came as C&C reported a fall of 0.7% in operating profits to €66.5m for the six months to the end of August. The results were in line with expectations.
Revenue dropped 13% to €302.4m as cider sales fell by 12%, but pre-tax profits were up to €65.1m, helped by an exceptional gain of €5m from currency contracts. An interim dividend of six cent will be paid.
The company said current trends in the cider market would lead to a 'material' drop in operating profits for the full year. Poor weather and weaker economic conditions have hit sales, and C&C is now beginning an 'in-depth' review of its marketing strategy in Britain.
Cider revenues were down 12.6% to just under €230m, while profits were 1.6% lower at €57.2m. Bulmers and Magners sales volumes each fell by 12%, though cost-cutting measures lifted margins. Revenue in the spirits division rose by 5.4% to €41.3m, while profits were up 1% to €8.9m.
Shares in the company closed eight cent higher at €1.43 in Dublin this evening.
