Synlait Milk Ltd (ASX: SM1) has lost its Chief Executive Officer Richard Wyeth in the midst of the company's attempt to turn its fortunes around.
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Directors and execs depart
It's also the latest in a string of executive and director resignations in recent weeks, with independent director Paulk McGilvary resigning earlier this week.
Last month Chief Quality Officer Hila Mory resigned, and Chief Supply Chain and Technology Officer Robert Stowell also resigned in early April.
Turnaround story?
Synlait in March released a letter to its shareholders saying it had been "another period of challenge" for the company.
The company acknowledged that shareholders would find the company's performance "frustratingly disappointing".
The company added:
The result reflects a period where Synlait faced multiple headwinds with little choice as to how to deal with them. At every stage we carefully analysed, costed and weighed up our options. Even with the benefit of hindsight, there is little we could have done differently that would have improved this result. Suffice to say building optionality into the business is a critical focus for our recovery.
For the first half ending January 31, Synlait posted a net loss of NZ$80.6 million, compared with a net profit of NZ$4.8 million for the previous corresponding period, on revenue of NZ$777.5 million, down from NZ$779 million.
In a joint statement at the time of the results release Mr Wyeth said the company was focused on six main levers to turn the company around.
He has now resigned, however will remain with the company until 30 June "to support an orderly transition and handover".
Current board director Leon Fung will take over as acting chief executive while a new leader for the company is found.
Recall flagged
Synlait said earlier this month it was assisting The a2 Milk Company Ltd (ASX: A2M) with its voluntary recall of batches of a2 Platinum USA infant milk formula due to the presence of cereulide.
Synlait said it had manufactured the product in compliance with relevant standards at the time.
The company added:
The recall was initiated after cereulide was detected through additional testing that was undertaken after new directives from New Zealand's Ministry for Primary Industries. The product was discontinued prior to the recall.
Synlait also this month said it had received two waivers in relation to its syndicated banking facilities.
The company had asked for its financiers to waive the quarterly minimum EBITDA "event of review threshold" and waive its interest cover ratio for the April 30 test date.
Synlait Milk shares closed at 38.5 cents on Wednesday afternoon. The company is valued at $232.2 million.
