Patrick McMahon, CEO of drinks giant C&C Group, has stepped down from his role following the discovery of significant accounting errors that forced the company to take a €17 million charge. The group, which owns major brands such as Tennent’s and Magners, announced that McMahon’s departure was “in the best interests” of the company, though the decision was made “with regret.”

The accounting irregularities came to light earlier this year when C&C Group appointed an independent audit firm to investigate discrepancies in its financial reports. The review revealed serious failures in internal reporting and highlighted that parts of the organisation’s behaviour lacked the transparency required to detect such issues.

€12m charge linked to apple contracts

As part of the fallout, the company disclosed several accounting adjustments, including a €12 million charge related to what it called “onerous apple contracts.” These adjustments were made following comprehensive internal and external audits of inventory and balance sheet reconciliations, triggered by concerns initially raised with the audit committee.

McMahon, who served as chief financial officer during the three-year period when the discrepancies occurred, officially stepped down last week. However, he will remain employed by the business until September to ensure a smooth handover.

Interim leadership and plans for succession

Following McMahon’s resignation, C&C Group’s board chair Ralph Findlay has been appointed as interim CEO. The company expects him to serve in the role for the next 12 to 18 months while a search is conducted for a long-term replacement.

Findlay brings extensive leadership experience and is expected to provide stability during a challenging time for the group. His appointment is seen as a move to reassure investors and employees as the company navigates the aftermath of the accounting issues.

Leadership changes continue at C&C

The departure of McMahon follows another recent high-level exit. In August 2023, C&C Group’s head of agency partnerships Michael Saunders submitted his resignation, leaving the company at the end of the year. Saunders, who had a long career with Bibendum beginning in 1982 and later became its CEO, officially ended his tenure with C&C in January 2024.

These leadership changes come as C&C Group faces mounting pressure to restore confidence in its governance and internal controls. The company has committed to implementing improved reporting standards and oversight as part of its recovery plan.

As the dust settles, C&C will be under close watch from shareholders and industry observers keen to see how the company responds to the reputational and financial damage caused by the reporting failures.