TASMANIAN infant formula manufacturer Bellamy's saw its shares devalued by more than a third after it dumped its ceo Laura McBain (pictured) and slashed its profit guidance for the coming six months, ABC reports.
Resurrecting from a 40-day trading halt this week, the company announced an overhaul of its directorship replacing McBain with chief operating officer and chief strategy officer Andrew Cohen.
McBain will remain employed with the company until 31 Mar.
Shareholders had reportedly been urging replacement of a number of independent non-executive directors, a push which the company said it was resisting.
Bellamy's released a statement to the ASX saying it had renegotiated its contract with Fonterra, allowing it to cut production, and enabling an announcement about reduced profit guidance.
It is expecting its net profit after tax to be between 4% and 6% of revenue, due to lower sales volumes, high interest costs and increased costs of organic ingredients, the company said.
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