Tasmanian dairy company Bellamy's CEO Laura McBain to leave after price plummet

The embattled baby formula company announced to the Australian Securities Exchange (ASX) that Andrew Cohen has been appointed acting chief executive.

The announcement was made by the organic dairy company’s chairman Rob Woolley.

Fairfax Media was informed the board of Bellamy's voted to remove Ms McBain as chief executive at a meeting on Wednesday.

After trading as high as $16.50, Bellamy's shares collapsed to a low of $6.80 on December 2, after the company released a shock trading update that revised its China sales downward.

Bellamy’s had half a billion dollars wiped off its value in December following the collapse and share prices plummeted more than 40 per cent in one day.

Investors reacted swiftly to the ructions at the top of the company on Wednesday, slashing hundreds of millions off its worth, with the shares down a heavy 31.4 per cent at $4.68 soon after the lengthy trading suspension was removed.

A business update provided to the ASX stated Ms McBain would step down from her role as the chief executive but would remain at the company until March to assist Mr Cohen’s transition. 

The board also announced it would be assessing the “skills and experience” required of its executive team to respond to market conditions.

Bellamy’s stunned its shareholders again in December when it announced its anticipated revenue for FY17 would be about $240 million, less than the $350 million anticipated by analysts.

As a consequence of lower than expected sales, the company has recorded high inventory levels and is focused on reducing production. Andrew Cohen has been with Bellamy’s since July as a chief operating officer.