Treasury Wine Estates’ chief executive David Dearie is leaving the company with immediate effect after just two years in the job.
Treasury chairman Paul Rayner said the board had decided to search for a new chief executive in the wake of a major writedown of aged and excess stock in the US.
“Following the writedown of excess US inventory announced on 15 July 2013, the board has undertaken a review and concluded that now is the right time to look for a new CEO,” Rayner said in a statement on Monday.
“In particular, having established a solid platform since demerger, the board believes Treasury needs a leader with a stronger operational focus to deliver the company’s growth ambitions.”
Board member Warwick Every-Burns will be appointed interim CEO while the company searches for a new chief executive.
Rayner thanked Mr Dearie for his contribution to Treasury since being appointed CEO in May 2011, immediately prior to its demerger from Fosters Group.
“Over the last two years, David has played a critical role in guiding Dearie through its demerger and establishing the company as a standalone business,” he said.
“He has also successfully built the profile of Treasury’s iconic wine brands internationally.”
In July, Treasury announced it would destroy more than $A35 million of aged and excess stock in the US and offer major discounts after admitting it overestimated the amount of wine needed to supply the market.
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The discounts and excess stock destruction were part of a broader $A160 million writedown.
The winemaker reported a net profit for the 12 months to June 30 of $136.8 million, up 1 per cent from $135.5 million in 2012.
Revenue for the year came in below the company’s July earnings guidance at $209.2 million, a fall of half a per cent from $210.2 million in the previous year, as a $7 million non-cash, unrealised loss of foreign exchange options weighed.
Investors punished Treasury Wine Estates shares in early trade Monday.
Shares dropped six per cent, falling 28 cents to $4.47 as of 1050 AEST.
