Synlait Milk chief executive Leon Clement resigns after 'tough' year
Monday, 12 April 2021
Synlait Milk chief executive Leon Clement will leave the dairy manufacturer at the end of this month.
The company’s former chief executive and co-founder John Penno will step into the role in May until a replacement is found. Penno is on Synlait’s board of directors.
Clement, who has been in the role since September 2018, presided over the dairy company’s expansion with new plant, customers and acquisitions as it sought to diversify away from its largest customer, specialist milk marketer The a2 Milk Company which accounts for much of its earnings.
Just as it came out of a heavy period of investment, Synlait came under pressure last year when Covid-19 dented sales of a2 Milk’s products, hurting its profits.
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“It’s been a tough job over the last 12 months,” said Grant Davies, an investment adviser at Hamilton Hindin Greene.
Davies said he hoped Penno would be able to help the company “rediscover its mojo”.
“Things are really conspiring against them at the moment but they have got good quality assets so I’m sure we will see the other side of this one,” Davies said.
Synlait chairman Graeme Milne paid tribute to Clement, describing him as “an authentic and transformational leader”.
“He has successfully repositioned Synlait’s purpose, ambition, and strategy to make us a more diversified and sustainable company,” Milne said.
Milne said the board accepted Clement’s resignation with regret, and it wished to record its thanks and recognition of the major achievements he has overseen.
While no reason was given for the resignation, Milne noted “the substantial impact that Covid-19 has had on Synlait and the difficult challenge this would present to any management team”.
Clement said it had been an intensive period of change and growth and he was proud of the company’s achievements.
Synlait shares fell 2 per cent to $3.43, taking their decline over the past year to 53 per cent.