Patrick McMahon, chief executive officer of drinks group C&C is stepping down from his role with immediate effect following accounting errors at the company.
This morning C&C announced that accounting 'adjustments' are expected to be made in respect of inventory and balance sheet items.
Mr McMahon was Chief Financial Officer during the periods to which these adjustments relate and acknowledged that the relevant shortcomings occurred at a time when he had overall responsibility for the group's finance function.
C&C said there is no change to the group's expected earnings for the full year of 2024-2027, however they do impact previously reported financial statements.
"These adjustments in aggregate represent an underlying operating profit adjustments charge of €5m," the company said.
"By year, the restatements comprised a €1m adjustment charge in FY2023, a €3m adjustment credit in FY2022 and a €7m adjustment charge in FY2021," it added
"In addition, the Group is expecting to record an exceptional prior year (FY2023) charge with respect to onerous apple contracts of €12m which was initially expected to be recorded in FY2024."
It said the total value of the adjustments, underlying plus exceptional, is €17m.
The company said Ralph Findlay has been appointed Group CEO, in addition to his duties as Chair of the Board.
It expects Mr Findlay will remain as Group CEO for between 12 and 18 months, subject to the timing of the recruitment of Mr McMahon's long- term successor.
It said the search to fill that role will begin in the autumn.
Net revenue of €1.652bn expected for 2024
In a financial update also published this morning, the group said it expects to report net revenue of €1.652bn for the full 2024 year, which would be down 2% on last year.
Operating profit before exceptional items in the year is expected to be €60m and overall earnings before exceptional items, finance income & expense, tax, depreciation and amortisation charges are anticipated to be €94m.
"Set against a difficult market backdrop, we are pleased with the performance of our brands in FY2024 with Tennent's and Bulmers continuing to gain share in Scotland and the Republic of Ireland respectively," the company said in a financial update.
The group said it is well placed to take advantage of the critical summer period ahead, including the Euro '24 tournament which includes the participation of the Scottish and English football teams.
The Ireland division's net revenue is expected to have increased by 3% in the year to €286m.
Underling operating profit is expected to show an increase of €3m.
"We were pleased with the performance of our iconic Bulmers brand in Ireland with net revenue growth of 8% relative to the prior period," C&C said.
"Between the on and off-trade, Bulmers remains the largest and most popular cider brand in the Republic of Ireland.
"Five Lamps had a decent performance in the year with volume and net revenue growth of 4% and 17% respectively, albeit from a low base."
The group said at this stage, there is no change to its expected earnings for 2025, and future years.
"Given the strength of our balance sheet and the Group's strong cash generation characteristics, the board has previously communicated our intention to distribute €150m to shareholders over the three fiscal years, FY2025 to FY2027 and we are pleased to reaffirm this commitment," the group said.
"In that regard, on 1 March 2024, a €15m share buyback programme was announced and we have utilised €12m of the allocated funds.
"Our assessment remains that this is an appropriate allocation of capital and as such we intend to launch a further €15m share buyback programme from 1 September 2024," it added.
