BWX Ltd Restructures Leadership, Trading And Governance Updates Provided

BWX Ltd (ASX: BWX) is a global, natural beauty and personal care production and distribution company. On 16 May 2019, BWX Ltd provided an update related to leadership, trading and governance.

The company announced that Mr David Fenlon, who is currently the Non-Executive Director of BWX, has been named as the Global CEO and MD, taking charge from early July this year. Mr Fenlon is not just a veteran consumer products and retail CEO, he has also been a public company Director.

Other than the above announcement, the company also highlighted about the global restructuring with the focus on building business capability as well as executional focus in key markets.

In the Asia-Pacific (APAC) region, Mr Rory Gration who had joined the company in August 2018 as Managing Director Asia Pacific will be reporting to Mr Fenlon and he will be focusing on the execution of the APAC growth strategy. Mr Anceschi will be leaving the business.

The company also announced the appointment of Mr Stephen Brown, who previously worked for Kimberly Clark, to the role of Sales Director for the APAC region and will commence his position in July 2019.

The Board also announced that the founders of Andalou Naturals, Stacey Kelly Egide and Mark Egide have started a discussion with respect to their future transition out of the BWX operation. Stacey Kelly Egide and Mark Egide are in favour of the search for a new President for BWX Brands, USA in order to facilitate a smooth transition for their departure.

Also, this week, Mr Ted Witt has taken over the role of Senior VP Operations US.

Guidance updated:

The company expects that in FY2019, the Trading EBITDA would be in between $21 million to $23 million. The company further anticipates that in the 4th quarter, Sukin trading would be impacted due to nonprofitable promotions and needless stock building. The company hopes to see better margin and a drop-in trade outlay in FY2020 as the advertising activity and the stock gets managed and reach suitable levels. All other businesses of the company apart from Sukin is in line with the expectations.

The company also reported growth in consumption and category outperformance in Sukin Skin and Hair business. Over the coming months, Sukin will be seen in store at Countdown stores in New Zealand.

On a global scale, the company is focusing on the continued growth in the US, the UK, Europe, Asia and the Middle East. The company is also focused on the mitigation of Daigou channel challenges in China through the extended rollout into additional ecommerce platforms.

Focus on governance

Following the appointment of Ms Jodie Leonard and Ms Fiona Bennett in December 2018, the Board continues its program of Board renewal and is in the search process for an additional Non-Executive Director. After the appointment for this position, the company would be having strong governance and commercial focus comprising five Independent Non-Executive Directors. It also includes the Chair and one Executive Director. The company is also in the process of appointing an in-house Company Secretary who will be directly reporting to the Chairman.

The shares of BWX Ltd has generated a decent YTD return of 21.21%. At present, the shares of BWX are trading at A$1.700 (AEST 3:17 pm, 16 May 2019), down by 15% as compared to its previous closing price. BWX Ltd holds a market capitalization of A$248.5 million with 124.25 million outstanding shares, PE ratio of 14.39x and an annual dividend yield of 3.73%.


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