)
More than two years after a tumultuous board upheaval rocked Bubs Australia (ASX: BUB) following the ousting of its former chair and CEO, the infant milk formula manufacturer has announced the resignation of chair Katrina Rathie – one of the combatants in the drawn-out saga.
Rathie’s resignation is effective immediately, replaced by non-executive director Paul Jensen who joined the board in 2023.
Her departure comes just seven weeks after Bubs announced that Joe Coote would step in as CEO, replacing former SPC Ardmona and Bulla boss Reg Weine.
Both Weine and Rathie took on their respective roles at Bubs in 2023 in the aftermath of the ousting of founder and former CEO Kristy Carr and former chairman Dennis Lin.
That same year, both Weine and Rathie survived a leadership spill led by Carr and Lin, who were both terminated by the company due to “failure to comply with reasonable board directions”.
The company gave no prior indication that Rathie would be resigning as non-executive chair.
Rathie, who this year was named Small Company Chair of the Year at the inaugural Australian Financial Review Boss Director Awards, wrote in the Bubs annual report released last Friday that the appointment of Coote was critical to the company’s future growth plans.
“As we enter the next stage of our development, we believe Joe’s extensive industry and international experience will assist us in capturing growth opportunities for the business,” she wrote.
Bubs Australia posted its first statutory profit in FY25, with net after-tax earnings of $5.5 million up from a $21 million loss in FY24.
Underlying EBITDA was $600,000 compared with a loss of $20.3 million a year earlier as revenue surged 29 per cent to $102.5 million.
Coote has brought to Bubs Australia more than 20 years of global leadership experience in the consumer products, dairy and infant formula sectors.
Jensen, who has been the chair of the Bubs audit and risk committee, has served as a director on ASX-listed and unlisted company boards for more than 20 years with experience across a range of industry sectors.
“I am excited about the future of Bubs and the opportunity to serve as chair and welcome Joe to the board as managing director,” says Jensen.
“We are committed to further board evolution during this financial year to ensure we have the right mix of skills and experience to oversee our corporate strategy and to align with corporate governance standards.”
)
