Murray Goulburn's managing director Gary Helou will step down from his role following a significant downgrade of the dairy co-operative's profit and milk price.
MG said it now expected to achieve net profit after tax (NPAT) of between $39m and $42m for the 2016 financial year.
In February, the dairy processor had forecast profit of $63m, and earlier, in its prospectus, it had forecast $89m.
MG attributed the downgrade to unfavourable movement in the exchange rate, lower than expected adult milk powder sales in China, and milk revaluation expense on inventory.
MG said that, following the trading update announced to the ASX today, the board and Helou had agreed that the “stewardship of the company going forward will be best served under fresh leadership”.
David Mallinson, MG's executive general manager of business operations, has been appointed interim CEO.
Helou will remain with the company for a short period to assist with the transition to Mallinson while a replacement is sought.
MG chief financial officer Brad Hingle also resigned from his position following Helou’s decision to step down.
MG Chairman PhilipTracy said he believed history would judge Gary as a visionary leader who delivered a strategy that has transformed the industry.
“Gary has made a significant contribution to MG and has been a powerful driving force behind our transition to become a globally recognised, ASX-listed food business," Tracy said.
"We thank Gary for his passion, drive and leadership during what has been an important transformation period for MG.”
Helou said: “During my time at MG we have transformed the company’s capabilities and capacity and in the process delivered two consecutive years of premium milk prices for Australian farmers. While maintaining this price has proven to be difficult in current market conditions, I firmly believe MG has the foundations in place to support a strong and successful business in the years ahead.”
