The CEO of Namoi Cotton is resigning after 26 years at the company
Food & Agriculture
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Namoi Cotton (ASX: NAM) CEO Jeremy Callachor is calling time on a long career at the company.
Callachor’s resignation was announced to the ASX this morning, effective from tomorrow, March 8.
Namoi’s chief financial officer, Stuart Greenwood, has been appointed as interim acting CEO while the board begins its search for a replacement.
Looking back at his long tenure at the company, Callachor cited the historic growth of Australia’s cotton industry, and the challenges associated with positioning the company as a premium exporter to global markets.
“The business has evolved over time and I have felt enormously proud to be involved with this evolution, including leading a turnaround of the business in 2011/12 and the restructure in 2017,” Callachor said.
Callachor’s involvement with Namoi goes back 26 years. He was appointed as CEO in November 2010, and served as the chief financial officer from June 2003 until January 2008.
On his way out the door, Callachor will receive a lump-sum payment equivalent to 38 weeks pay in accordance with his annual salary.
Like many agricultural companies, Namoi’s recent crop output has been affected by historically harsh drought conditions.
In late February, it revised down full-year profit forecasts to $3.5m-$5m, from a previous estimate of $4-$7 million.
Last November, Namoi flagged that it was bracing for the 2019 cotton crop to be about half of what it saw last season, as the drought drains water reserves.
The company has now begun its 2019 cotton harvest and reiterated its previous guidance, with output expectations of around 2.25m bales (down from 4.52m bales in 2018).
In addition, “the extraordinary impacts of the ongoing drought are anticipated to impact the operations of Namoi Cotton in the forward 2019/20 financial year,” the company said.
“The Board continues to review the operations of Namoi Cotton to mitigate the impacts of these exceptionally dry weather conditions.”
Also in late February, the company said it had renewed its finance arrangements with the Commonwealth Bank. The renewal gives Namoi access to a $42m term-debt facility and a $10m working capital facility.
Shares in the company are trading at 40 cents, down from a 12-month high of 54 cents.