Within a year, Patrick McMahon is stepping down immediately from his position as the C&C’s CEO due to mistakes in account management during his tenure as CFO which led to the restatement of three years of accounts and a net charge of €5 million. McMahon’s departure, announced by the company, highlights his responsibility for these glaring financial pitfalls during his tenure. Yet, this upheaval leaves some lingering queries about C&C’s future.
Ralph Findlay, the Chairman, is set to replace McMahon as CEO, a position he’ll hold for 12 to 18 months. Findlay’s decision to step up leaves some scratching their heads, wondering about his ability to lead, having previously endorsed McMahon. How will he fare now, considering his past misjudgment concerning the previous CEO?
This is an ongoing trend at C&C. McMahon took over after his predecessor David Forde was forced to leave abruptly, following a €25 million charge linked to a new planning system’s implementation. There have now been two CEO departures within a year, both on negative terms, indicating possible deep rooted concerns within the company culture.
Despite such turmoil, the business appears to be operating as expected, except for troubles encountered with its Magners cider in the UK. Listed as one of C&C’s four major UK brands, an alarming drop in sales led to a goodwill charge of €125 million on Magners UK. This is no small figure for a company with a market cap of £656 million (€771m).
The immediate priority for C&C is to steady the ship and make a wiser choice for its next CEO appointee.