TIDMCCR
Trading Update & Directorate Changes
Patrick McMahon appointed as Group CEO and Ralph Findlay
appointed as Executive Chair
C&C Group plc ('C&C' or the 'Group'), a leading,
vertically integrated premium drinks company which manufactures,
markets and distributes branded beer, cider, wine, spirits and soft
drinks across the UK and Ireland, announces that it has encountered
significant challenges, in terms of time, cost and customer
service, in the implementation of a complex Enterprise Resource
Planning ('ERP') system upgrade in the Matthew Clark and Bibendum
('MCB') businesses in Great Britain.
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. Service levels had largely returned to
normal levels by the Pre-Close Trading Statement of 23 March 2023,
however continuing system implementation challenges, impacted by
greater seasonal trading volume, saw a deterioration in service
levels in April. An improvement through May is being achieved by
investing in material additional cost and resources, ahead of a
system fix being implemented to permanently restore service to
normal levels.
C&C currently expects a one-off impact of c.EUR25 million
associated with ERP system disruption in FY2024, reflecting the
cost associated with restoring service levels and lost revenue.
There is expected to be a consequential increase in working capital
in FY2024, 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 is currently performing in line with management
expectations for FY2024 and the Board is confident in the Group's
medium and long-term strategy and prospects.
C&C re-affirms the guidance given in its Pre-Close Trading
Statement of 23 March 2023. Specifically, the Group expects to
report operating profit of EUR84 million. C&C's strong free
cash flow generation, together with increased balance sheet
strength will also enable a re-instatement of dividend payments to
shareholders, with respect to FY2023.
The Group also announces that David Forde, having navigated
C&C through the challenges of the COVID-19 pandemic, has
informed the Board that he wishes to step down as Chief Executive
Officer. He will cease to be a Director with immediate effect but
will be available to help ensure a smooth handover of
responsibilities. Patrick McMahon, Group CFO, has been appointed
Group CEO with immediate effect. Ralph Findlay, Chair, has been
appointed Executive Chair to support the management transition as
Patrick McMahon will also retain his responsibilities as CFO until
a new CFO is appointed, the process for which will commence
shortly.
Ralph Findlay, Chair of C&C, commented:
"David has informed the Board that he believes that now is the
right time for him to step down as CEO and to allow the business to
go forward under new leadership. The Board recognises and thanks
David for his contribution to the Group throughout a challenging
period for our industry. As part of our ongoing succession planning
we keep internal and external candidates for all key positions
under review and we are pleased to have someone with Paddy
McMahon's skillset and knowledge of the business to step into that
role."
David Forde commented:
"It has been a privilege to lead such a great business as
C&C. I am grateful to all C&C colleagues for their
dedication, resilience and commitment in recent years. I wish the
Group all the best for the future under Ralph's and Paddy's strong
leadership."
The Group will issue FY2023 full year results on Wednesday, 24
May 2023.
This announcement contains inside information. The person
responsible for arranging the release of this announcement on
behalf of C&C is Mark Chilton, Company Secretary & Group
General Counsel.
ENDS
Contacts
C&C Group plc
Riona Heffernan, Group Finance and Investor Relations
Director
Email: riona.heffernan@candcgroup.com
UK & International Media
Richard Hayhoe
Email: richard.hayhoe@candcgroup.com
Investors, Analysts & Irish Media
FTI Consulting
Jonathan Neilan / Paddy Berkery / Aline Oliveira
Tel: +353 86 231 4135 / +353 86 6025988 / +353 83 8331644
Email: CandCGroup@fticonsulting.com
About C&C Group plc
C&C Group plc is a leading, vertically integrated premium
drinks company which manufactures, markets and distributes branded
beer, cider, wine, spirits, and soft drinks across the UK and
Ireland.
-- C&C Group's portfolio of owned/exclusive brands include:
Bulmers, the leading Irish cider brand; Tennent's, the leading
Scottish beer brand; Magners the premium international cider brand;
as well as a range of fast-growing, premium and craft ciders and
beers, such as Heverlee, Menabrea, Five Lamps and Orchard Pig.
C&C exports its Magners and Tennent's brands to over 40
countries worldwide.
-- C&C Group has owned brand and contract
manufacturing/packing operations in Co.Tipperary, Ireland and
Glasgow, Scotland.
-- C&C is the No.1 drinks distributor to the UK and Ireland
hospitality sectors. Operating through the Matthew Clark, Bibendum,
Tennent's and Bulmers Ireland brands, the Group has a market
leading range, scale and reach including an intimate understanding
of the markets it serves. Together this provides a key
route-to-market for major international beverage companies.
C&C Group is a FTSE 250 company headquartered in Dublin and
is listed on the London Stock Exchange.
Note regarding forward-looking statements
This announcement includes forward-looking statements, including
statements concerning current expectations about future financial
performance and economic and market conditions which C&C
believes are reasonable. However, these statements are neither
promises nor guarantees, but are subject to risks and
uncertainties, including those factors discussed in our FY2022
Annual Report that could cause actual results to differ materially
from those anticipated.
Executive Arrangements
All remuneration arrangements for Patrick McMahon are consistent
with the terms of the Directors' Remuneration Policy approved by
shareholders at the AGM in July 2021 (the "Policy"). As Group CEO,
Patrick McMahon will receive an annual base salary of EUR675k and a
pension allowance of 5% of salary in line with the contribution
available for the Group's employees. The Board will review
Patrick's salary once he has been in role for a period of time to
ensure that it recognises his experience, scope of responsibilities
and performance.
All remuneration arrangements for Ralph Findlay are consistent
with the terms of the Policy. As Executive Chair, Ralph Findlay
will receive a fee of EUR660k per annum.
David Forde's remuneration and severance terms will be in line
with his service agreement and the Directors' Remuneration Policy
approved by shareholders at the AGM in July 2021 (the
"Policy").
There are no other matters to disclose under Listing Rule
9.6.13.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20230518005801/en/
CONTACT:
C&C Group PLC
SOURCE: C&C Group PLC
Copyright Business Wire 2023
(END) Dow Jones Newswires
May 19, 2023 02:00 ET (06:00 GMT)
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