C&C Group PLC (LSE:CCR) has said it expects to take a €25mln headwind in the current financial year from the implementation of its “complex” enterprise resource planning system in its Matthew Clark and Bibendum (MCB) business.
The process has taken longer and been more challenging than expected, having a material impact on service and profitability within MCB, the Magners cider firm said in a statement said.
Although service levels had largely returned to normal by March, system implementation challenges, impacted by seasonal trading, saw a deterioration of service levels in April, although there was an improvement through May, it added.
Despite this, C&C reaffirmed pre-close guidance for an operating profit of €84mln, while its cash flow generation and balance sheet will enable it to reinstate its dividend for 2023.
Excluding the impact on MCB, the company said it is performing in line with expectations for 2024 and that its board is “confident” in its medium and long-term strategy.
C&C also announced that David Forde will be stepping down as its CEO to be replaced by Patrick McMahon, the group’s CFO, with immediate effect.
“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,” said chair Ralph Findlay.
McMahon will continue his role as CFO until a replacement is appointed, while Findlay has been made executive chair to support the management transition.