Shareholders at C&C Group are grappling with a series of challenges as the company’s recently appointed CEO, Mr White, initiates his leadership amid turbulent market conditions. Mr White took on the role on January 20, 2023, succeeding former chief executives David Forde and Patrick McMahon, who departed after incidents involving a failed upgrade to the company’s ordering system for its wine wholesale business, Matthew Clark Bibendum, and other accounting errors.
C&C Group has released its first trading update under Mr White’s leadership, revealing a downgrade in profit expectations for the financial year ending on February 28, 2024. The decrease in projected profits comes at a time when the hospitality sector faces mounting pressures, including a significant increase in employer national insurance contributions and the national living wage, effective next month. These changes, coupled with ongoing inflation and the cost of living crisis, are impacting consumer confidence and intensifying difficulties for businesses in the hospitality field.
In an interview with The Herald, Mr White expressed a cautious optimism about the company's internal operations, suggesting that C&C has moved past some of the issues that have plagued it in recent times. He highlighted that customer service levels at the firm have stabilised following what he referred to as a "disruption" earlier in 2023. However, he also acknowledged the precarious situation within the hospitality industry, noting that the current political and economic climate is “volatile” and poses significant challenges.
Looking ahead, both C&C and the broader hospitality sector may face a turbulent few months as they navigate these complex economic conditions.
Source: Noah Wire Services