A2 Milk reorganises top brass after Nathan's resignation

A2 Milk's chief executive and managing director David Bortolussi. Photo / Supplied

A2 Milk has reorganised its top management following the resignation of the long-serving and influential chief executive for Asia Pacific, Peter Nathan, earlier this year.

The Asia Pacific division, which comprises most of a2 Milk's business, will be reorganised into three business units to provide more dedicated focus on its key components: China domestic business; International export business; and Australia & New Zealand (ANZ) domestic business.

Xiao Li, chief executive – Greater China, will continue to report directly to chief executive and managing director David Bortolussi, with responsibility for the company's China label infant milk formula and other domestic business.

Two new leadership roles are being created for the international and ANZ businesses.

Former Bellamy's executive Yohan Senaratne will join the company as executive general manager – international, reporting to Bortolussi.

Senaratne will be responsible for leading the company's cross-border export business, primarily focused on English label infant formula products made in New Zealand and sold into China, but also including liquid milk and other nutritional products.

The international team will be responsible for managing English label infant formula products sold through all channels, mainly through the daigou/reseller and cross-border eCommerce channels.

It will also be responsible for developing the company's business in emerging markets.

Senaratne's most recent role was sales and marketing director at Australia's Bellamy's, where he was instrumental in the transformation and relaunch of the infant formula and baby food brand in China, Australia and Southeast Asia, a2 Milk said.

He has also held multiple roles at Mondelez International, including head of eCommerce for Australia, New Zealand and Japan.

A2 staffer Kevin Bush will become a2 Milk's executive general manager – ANZ, reporting to Bortolussi.

In this new role, Bush will be responsible for leading the company's business in ANZ with a focus on continuing to grow the liquid milk business in the near term as well as evolving its strategy.

Bush has been sales director – ANZ at a2 Milk for the past 5 years.

A2 Milk said Bush had been pivotal in growing the a2 Milk liquid milk brand and driving increased market share.

He oversaw the successful establishment of the a2 "Platinum" brand infant formula brand in the South Korean market and various other business development initiatives across the group.

Bush has extensive fast moving consumer goods experience across both the Australian and UK markets and has held senior positions with leading consumer goods companies including Mars, Nestle and McCain Foods.

"Together these appointments and organisational changes will provide more dedicated leadership and focus on key components of our business and improve execution going forward," Bortolussi said in a statement.

Early this month, a2 Milk appointed former Danone executive Edith Bailey as its chief marketing officer.

Peter Nathan resigned in May after 14 years with the company, having been instrumental in a2 Milk's success in the daigou channel and in growing the company to become one of the NZX's biggest.

Nathan sold the bulk of his a2 Milk holding - 750,000 shares - for around $20 a share, or $15 million, in August last year.

Geoff Babidge, former managing director and CEO of a2 Milk. Photo / NZ Herald

Chairman David Hearn, former chief executive Geoff Babidge, and outgoing senior executive Susan Massasso also sold big chunks of stock at the near record price at that time.

A2 Milk's shares have slumped in the aftermath of four successive earnings downgrades, but have been steadily gaining since hitting $5.50 in late May.

They traded this morning at $7.77, up 17c or 2.2 per cent from Friday's close.

A2 Milk's earnings have been clouded by the severe impact of Covid-19 on the important unofficial daigou trade, which involves individuals buying infant formula off retail shelves and sending them to China, alongside larger corporate-style corporate daigou players.

In its latest earnings guidance issued in May, the company said it was targeting revenue for 2021 in the order of $1.20 billion to $1.25 billion, down from a previous guidance in February of $1.4 billion.

Revenue in the June 2020 year came to $1.73b, up a third on the previous year's.