The A2 Milk Company Ltd (ASX: A2M) share price is on watch after it announced a member of management is stepping down.
A2 Milk is one of Australia and New Zealand’s largest infant formula producers and the leader in a2-only protein based dairy products.
Who is stepping down?
In the announcement this morning the company said that Chief Growth and Brand Officer, Susan Massasso, has advised of her intention to step down from her role effective 15 April 2021. From that date she will continue with A2 Milk in an advisory capacity.
Ms Massasso previously announced her intention to step down in late 2019, however she agreed to remain with the company and assist with the transition to a new CEO.
The company said that it wishes to acknowledge the significant contribution Ms Massasso has made in leading the development of its unique, modern and premium brand that has been intrinsic to the growth journey.
A2 Milk CEO Geoff Babidge said “Susan has been instrumental in building our brand and business since she joined the company in 2013. With her passion and commercial insight, she has been a key contributor to our success, and we will miss having her in the business. We are pleased that Susan will continue to be involved in the business supporting the Executive Leadership Committee and reporting to the incoming CEO, David Bortolussi.”
Regarding her departure, Susan Massasso said “My nearly eight hears at The a2 Milk Company has been the role of a lifetime. Being part of such a passionate team and assisting in the development of this extraordinary business has been a privilege. Our leadership position as pioneer of the A2 protein proposition, our distinctive brand and unique company culture are core elements which will support our ongoing growth into the future. I am also looking forward to continuing my involvement with the company in my new capacity in the future.”
The company said that the search for Ms Massasso’s replacement will begin over the coming months.
Summary thoughts
Over the past six months the A2 Milk share price is down over 45%. Earlier this month I pondered whether the A2 Milk share price is a big opportunity right now? and outlined the downgraded HY21 and FY21 guidance and drop off in sales.
I do believe that A2 Milk is a quality business, however it is going through a rough time. It could prove an opportunistic time to buy if Chinese and daigou demand returns to pre-COVID levels sooner rather than later.
A2 Milk shares could be a good opportunity if you have a 2-year or longer investment horizon. Although I feel there are currently a few too many question marks for my liking at this point in time.
When looking to buy ASX growth shares I have companies that are higher on my watch list such as Magellan Financial Group Ltd (ASX: MFG).
