The Freedom Foods Group Ltd (ASX: FNP) share price is plummeting today in response to news of a management shake-up.
At the time of writing, Freedom Foods shares have dropped 14.06% to $3.025 after falling as much as 21.88% in morning trade.
What did Freedom Foods announce?
This morning, the company revealed that its managing director and chief executive, Rory Macleod, is “on leave pending a further announcement that is expected to be made early next week”.
Commercial director Brendan Radford will take the reins for the time being as acting CEO. Mr Radford was previously the Australasian managing director of Rockstar Energy Drink and has 18 years of international experience in the fast-moving consumer goods (FMCG) space.
Additionally, current non-executive chairman Perry Gunner will move into an executive position on the board, in place of Mr Macleod.
Freedom Foods didn’t shed any further light on the matter, leaving many investors scratching their heads.
Mr Macleod joined Freedom Foods in 2003. Over the years, he has been involved in the company’s strategic, operational and financial development and stepped into the top job in 2012.
Today’s news follows another leadership announcement that was released after the market closed yesterday.
In yesterday’s after hours release, Freedom Foods disclosed the resignation of chief financial officer and company secretary, Campbell Nicholas.
Mr Nicholas joined Freedom Foods in September 2016. No details were provided in relation to his exit.
Stephanie Graham, general manager corporate development, has been appointed as acting CFO. Meanwhile, current non-executive director Trevor Allen has been appointed company secretary.
“The Finance team will continue to manage the usual financial controls,” Freedom Foods stated.
Including today’s drop, Freedom Foods shares have fallen just over 40% year-to-date.
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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freedom Foods Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Freedom Foods share price drops 14% as CEO goes “on leave” appeared first on Motley Fool Australia.
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