Shares in Magners maker C&C slump 17 per cent after leadership shakeup and botched software upgrade
Shares in beer and cider brewer C&C slumped today as the firm said plans to upgrade software at a subsidiary hit big obstacles, forcing a leadership shakeup.
Shares in C&C, which makes Magners and Bulmers, were down nearly17 per cent on Friday morning.
The company said it has encountered “significant challenges” when rolling out new software at its subsidiary Matthew Clark and Bibendum (MCB) business in the UK.
“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,” C&C said.
Although there was a deterioration in service levels in April, C&C said services had largely recovered to normal thanks to “material additional costs and resources” ahead of a full system fix to permanently restore service levels.
As a result, it expects to take a €25m hit next year. The incident will not impact its 2023 results, due out next week, with the group expecting to report operating profit of €84m.
The company said excluding the impact of the botched rollout, it is standing in lines with expectations for 2024.
Following the failed roll-out, chief executive David Forde announced he was standing down. Finance chief Patrick McMahon has been appointed CEO in Forde’s place.
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,” Findlay continued.