C&C Group has reported a drop in operating profits for the six months to August 31.

The company said today that operating profits were down 42.8%, to €30.5 million. The fall, which is in line with last month’s trading update, was driven by a c.€22 million impact from the implementation of its Enterprise Resource Planning (ERP) software system.

According to C&C, service levels have been restored to pre-ERP implementation and the priority in H2 FY2024 will be ensuring “we deliver outstanding service to our customers, win back customers and improve operating efficiency”.

Meanwhile, H1 sales slipped 1.2%, to €872.5 million.

Elsewhere, C&C flagged a “robust performance” in Ireland and Scotland, while Bulmers cider and Tennent’s lager delivered sales growth of 9.1%. The premium beer portfolio was up 23.1% in revenue terms, the company said, with volumes increasing 16.8%.

Patrick McMahon, C&C Group CEO, said: “Set against a difficult market backdrop we are pleased with the strength of the performance of our branded businesses in Ireland and Scotland in the period. We have made significant progress in restoring customer service levels following the ERP system implementation issues in our GB distribution business within our planned timeframe. Delivering outstanding service, winning customers, continued business simplification and improved operating efficiency remain our top priorities and focus for the second half.”

McMahon, who was CFO at the company, became CEO earlier this year. C&C said today that the search for a new CFO is at “an advanced stage”.