Gary McGann, who yesterday announced his retirement as chief executive of the packaging group Smurfit Kappa, is understood to be planning to apply to become the next chairman of Paddy Power.
Paddy Power's current chairman is Nigel Northridge, who has held the role since 2009. Mr Northridge, the current chairman of Debenhams and a director of Aer Lingus, has not given any public indication he is planning to step down.
It is understood, however, that Mr McGann has expressed an interest in succeeding him when the time comes, although no decision has yet been taken.
Mr McGann, who joined as a non-executive of Paddy Power in November, would not comment on the bookmaker when queried about it yesterday.
“There are a number of things I would still like to do in the business sphere. I don’t want to be a hurler on the ditch. I don’t want to be simply dispensing wisdom to people, nor be in the full cut and thrust of executive life. But perhaps somewhere in the middle,” he said.
Replacement
Mr McGann, a former chief executive of Aer Lingus and a one-time director of Anglo Irish Bank, will retire from Smurfit Kappa after 13 years at the helm at the end of August, the month he turns 65.
He will be replaced by Tony Smurfit, a scion of the family that founded the forerunner company to Smurfit Kappa. Mr Smurfit is the company's chief operating officer.
Smurfit Kappa, which held its annual general meeting in Dublin yesterday, also announced results for the three months to the end of March.
Its revenues of €1.96 billion were up 2 per cent on the same period last year. Earnings of €266 million for the first quarter were down 1 per cent, while earnings per share were up 7 per cent.
Currency hit
Its earnings came in slightly behind analysts estimates, following a €14 million currency hit related to its Venezuelan operations.
The company said its corrugated packaging volumes in Europe increased by 4 per cent, “with good growth throughout most of Europe and particularly strong volumes in the southern European countries”.
Mr McGann said the company has a “good pipeline” of acquisitions. He also expressed confidence that Mr Smurfit would pursue policies similar to those of recent years, which have seen the company enter growth mode after addressing its previously high debts.
"Myself, Tony [Smurfit] and Ian Curley [the chief financial officer] have been in lock-step in recent years," said Mr McGann.
Goodbody Stockbrokers said the currency issues, which also affected its Mexican and Colombian operations, masked a “good underlying performance”.
“We are encouraged by the group’s underlying performance and management’s confidence to push price increases through in Europe,” said Goodbody analyst David O’Brien.
