The Ridley Corporation Limited (ASX: RIC) share price traded down nearly 3% on Friday after the agricultural company announced the departure of their CEO and informed of weaker than expected profits.
What Ridley Do
Ridley is an Australian company engaged in the production and marketing of animal nutrients, ingredients and feeds for the production of food from livestock. The company was formed and listed on the ASX in 1987.
What You Need To Know
In a statement released to the ASX, Ridley said it expected to achieve a full-year net profit of between $22 million and $24 million. Prior to this guidance being given the consensus estimate among analysts had been for profit of $25 million.
In a separate announcement, the company informed of the departure of their managing director and CEO Tim Hart. Mr Hart had been in the role for six years with the board ultimately deciding that it was time for a change in leadership following a sustained period of share price underperformance.
Ridley’s announcement did not provide any detail surrounding the specific circumstances or reasons for the decision.
Non-Executive Director David Lord will fill the void left by Mr Hart as the board searches for his replacement.
Ridley’s Falling Share Price
Shares in Ridley fell as much as 4.5% following last week’s announcements, hitting a low of $1.17, before the share price recovered somewhat.
The Ridley share price fell 9% in the month of June and Friday’s announcements are likely to add to the current negative sentiment. The board will be hoping to secure a new CEO in the near future to help arrest the slide.
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Disclosure: At the time of publishing, Luke has no financial interest in any companies mentioned.
