Synlait’s CEO to step down

SYNLAIT Milk chief executive Leon Clement is stepping down.

Market sources said the move was ‘‘sudden and unexpected’’.

The company’s cofounder and former CEO John Penno will fill in until a replacement is found, the company said.

‘‘It is with regret that the board has accepted the resignation of Leon Clement from the role of CEO at Synlait Milk,’’ the company said in a statement to the NZX.

Mr Clement has served as chief executive since September 2018, having previously held senior executive positions at Fonterra.

‘‘The board wishes to record its thanks and recognition of the major achievements he has overseen,’’ it said.

‘‘It also recognises the substantial impact that Covid19 has had on Synlait and the difficult challenge this would present to any management team.’’

Mr Clement will continue in his role until the end of April. Mr Penno will take over from May 1.

Synlait chairman Graeme Milne said Mr Clement had been ‘‘an authentic and transformational leader’’.

‘‘He has successfully repositioned Synlait’s purpose, ambition, and strategy to make us a more diversified and sustainable company,’’ he said.

Mr Milne said the board had thanked Mr Clement ‘‘for his energy and dedication to Synlait’’ during his time at the company.

In the statement, Mr Clement said: ‘‘It has been an intensive period of change and growth and I am proud of our achievements.

‘‘Synlait has an amazing team that is making a positive and sustainable impact in the areas we operate.’’

Late last month, Synlait, which his a2 Milk’s sole infant formula supplier, said its halfyear profit slumped by 76% to $6.4 million, as a result of Covid19 disruption, and said it expected to be ‘‘broadly breakeven’’ in the full year.

The fullyear outlook has worsened since last December when the company said it expected the 2021 profit to be half that of the previous year’s $75.2 million.

In early March, the company withdrew that December guidance due to uncertainty and volatility within its business.

Synlait is 39% owned by China’s Bright Dairy and just under 20% by a2 Milk.

Shares in Synlait last traded on Friday at $3.50, having dropped by 51.6% over the last 12 months. — The New Zealand Herald