A2 Milk CEO Unexpectedly Quits After Less Than 18 Months in Job

(Bloomberg) -- A2 Milk Co. Chief Executive Officer Jayne Hrdlicka unexpectedly stood down after less than 18 months in the job, saying the travel demands of her own overseas strategy were too onerous. The stock fell as much as 5.4% in Sydney.

After delivering a surge in sales and market value at the Australian and New Zealand infant formula company, Hrdlicka said her role would require an impossible amount of time in key markets China and the U.S. in the next three to five years.

At the same time, running a New Zealand company based in Australia meant more travel than she expected, she said in a statement to the stock exchange Monday.

“This next phase is going to be too difficult to manage alongside my other commitments whilst also managing the health and wellness priorities of my family and me,” Hrdlicka said.

A2 Milk Doubles Down in China as Infant Formula Sales Soar

A2 Milk became the poster child of overseas babyfood makers in China after a lethal tainted milk scandal among domestic formula producers sent consumers scrambling for safer alternatives. Hrdlicka spearheaded the company’s expansion deeper into China’s lower-tier cities, while tapping growing demand in the U.S.

A2 Milk was down 5.4% to A$13.76 at 10:29 a.m. in Sydney. The shares jumped about 40% in Sydney during Hrdlicka’s tenure.

Former CEO Geoffrey Babidge will act as interim CEO with immediate effect, A2 Milk said in the statement.

“I don’t envisage any material change to the plan that the board and senior management have in place,” Babidge said on an investor call, according to a transcript.

To contact the reporter on this story: Angus Whitley in Sydney at awhitley1@bloomberg.net

To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Jeff Sutherland

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