The BWX Ltd (ASX: BWX) share price is down around 12% after a surprise leadership change at the top of the natural beauty business.
What’s happening to the BWX share price?
BWX shares are suffering after the company announced yet another change to who is going to boss of the business from now on.
The outgoing CEO Dave Fenlon is leaving the top seat and will transition to become a non-executive director.
Succession planning has been a key focus point for the board who have worked closely with Mr Fenlon and his replacement on the appropriate timing and to ensure that the company is in the best position to continue building on the strategic growth pillars established since Mr Fenlon’s appointment.
The new CEO and Managing Director role will become effective on 1 March 2022.
New CEO
BWX has chosen the company’s current chief operating officer (COO), Mr Rory Gration, to be the new leader of the business. Considering how much the BWX share price has fallen, investors don’t seem convinced by the change.
Mr Gration has been with the business since since 2018 and has been an important part of the company’s global expansion strategy.
The BWX Chair Mr Ian Campbell said:
“With our new operations and manufacturing facility opening in March 2022, the Board and Dave believe that now is the appropriate time for him to step into the Group CEO role.
“The Board acknowledges Dave’s significant contribution in transforming BWX into a profitable, global player in the natural beauty and personal care space. We are pleased he will remain on the board to provide expertise that the company can continue to benefit from.”
Mr Gration has more than 25 years experience in the fast-moving consumer goods industry.
Before joining BWX, he had roles including the chief commercial officer at Monde Nissin as well as senior managerial roles at both Campbell Arnott’s and Coles Group Ltd (ASX: COL) Supermarkets.
His total base remuneration will be $700,000 plus superannuation, as well as short term and long term incentives.
Summary thoughts on the BWX share price
It’s a big decline for just a change at the top. BWX confirmed it’s expecting strong revenue growth for HY22 and for the full 2022 financial year, assuming retail markets continue recovering.
BWX has changed its CEO a few times over the last few years. Mr Fenlon was seemingly steering the company in the right direction. Ironically, there was upheaval after a few acquisitions a few years ago.
The BWX share price has fallen 23% over the last six months. Whilst today could be an opportune time to buy, with the useful tailwinds and global growth potential that BWX has, there is nothing to say that BWX shares should recover quickly back to $5.
There are other ASX growth shares that could be better opportunities.
