Bubs Australia chair Dennis Lin has resigned and stepped down from his executive role, as pressure mounted over its poor financial performance in 1H FY23. Non-executive board member Katrina Rathie has been elected as Lin’s replacement.
After Bubs’ share price surged in 2022 due to its accelerated US market entry with Operation Fly Formula and the resurgence of the daigou market, 1H FY23 results showed a $44.4 million loss, $20 million impairment on its Deloraine Dairy, and sales in China down 48 per cent.
In a statement to the ASX, the non-executive directors said they considered “the time is right for a change in leadership and to change the governance framework of the company”.
Lin had been on the board since Bubs listed on the ASX in 2017.
On LinkedIn, Bubs founder and CEO Kristy Carr said Lin was a “true leader” who had “masterminded and led every acquisition, merger, strategic partnership, capital raising and corporate development, as well as Bubs route-to-market and growth strategies in China and the USA”.
“He is the smartest, most strategic person I’ve ever met, and it’s been the highlight of my career to work alongside him. He has not only been a mentor to me, but also to many younger budding team members. I admire his selflessness, his resolute spirit, and contagious positivity. Above all else, he has only ever acted with the highest level of integrity in the best interest of the business and all shareholders. I 100 per cent stand by him,” Carr said.
Non-executive board member Katrina Rathie has been elected chair. She has been on the board as an independent non-executive director since July 2021.
Rathie has experience across FMCG/Infant formula, law, governance, and cross-border trade between Australia, China, and the US. She practiced law at King & Wood Mallesons for 35 years, including seven as partner in charge.
Rathie said with the company now operating in three core markets, it was “critically important the newly reconstituted board, under my leadership has strategic oversight over our expansion plans, as well as financial and non-financial risks”.
Paul Jensen was appointed to the board in March and chairs the Audit and Risk Committee.
Reg Weine joined the board as an independant non-executive director and said he saw “huge potential” to leverage the brand’s clean label credentials and capitalise on the recent entry into the US.
He is currently chair of Maggie Beer Holdings and has previously been managing director of SPC Ardmona and CEO of Bulla Dairy Foods.
