A2 Milk’s (ASX: A2M) stock plummeted 6% today, from 14.54 to 13.55 after Managing Director and Chief Executive Officer Jayne Hrdlicka announced she would be stepping down from her role. The market’s reaction to the news was much greater than projected, with CommSec only anticipating a 0.4% fall. Hrdlicka cited her reason for stepping down as the job required more travel than initially anticipated when joining the company. She commented that:
being present in our core markets of China and the US… combined with running a New Zealand company based in Australia… is going to be too difficult to manage.
The announcement came as a surprise to many given that the former CEO was only in the role for a year and a half. However, the Company’s board has commented that they would immediately commence a global search for a replacement CEO.
A2 Milk managing director and CEO Jayne Hrdlicka is standing down after just 18 months in the role.
The A2 Milk Company Limited is an ASX 200 public company that commercializes intellectual property relating to A1 protein-free milk that is sold under their two milk brands: A2 and A2 MILK. The company also sells related products such as infant formula. A2 Milk’s primary markets are in Australia, New Zealand and the United Kingdom. A2M generated over NZ$1.3B in revenue in FY19 (a 41.4% increase), and has a market cap of $10.7B, making it one of Australia’s largest listed companies.
The aforementioned share price dip comes as only a small setback to A2 Milk, as the company has rallied nearly 35% YTD, a significant feat, especially when compared to the ASX 200 index, which has seen growth of 20% in 2019. Furthermore, the Company has rallied 2,400% since listing back in 2015, making it one of the best performing stocks of the past 5 years.
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