C&C Group CEO steps down over €17m accounting error

McMahon has acknowledged that the relevant shortcomings occurred at a time when he had overall responsibility for the group's finance function

Patrick McMahon, chief executive officer of drinks group C&C has stepped down from his role following an unveiling of accounting errors at the company.

The Bulmers manufacturer said it was “in the best interests” of the company for McMahon to step down, though the decision was taken “with regret”.

C&C announced that accounting ‘adjustments’ are expected to be made in respect of inventory and balance sheet items.

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.

In a statement released last week, C&C outlined several prior year accounting adjustments, including a €12 million charge “with respect to onerous apple contracts”. It said the total value of the adjustments, underlying plus exceptional, is €17m.

It said: “The adjustments have been made following detailed internal and external reviews of inventory and balance sheet reconciliations after discrepancies were notified to the audit committee earlier this year.”

McMahon left the role late last week. However, C&C has said he will remain an employee of the business until September in order to facilitate a smooth transition.

Ralph Findlay, chair of the board, has been appointed group CEO. C&C expects that he will remain in post for between 12 and 18 months, subject to the timing of the recruitment of McMahon’s long-term successor.

C&C has 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.