Jayne Hrdlicka quits Qantas to be a2 CEO
A2 Milk says its new CEO, Qantas loyalty boss Jayne Hrdlicka, is a “star” who can take the company to the next level.
Departing a2 Milk chief executive Geoff Babidge has described the company’s new chief executive Jayne Hrdlicka as a “star” who can take the firm to the next level as it heads towards $1 billion in annual revenues and prepares to join the ASX100.
“She is customer focused, she knows how to operate in a disruptive environment, has strong strategic capability and financial acumen,’’ he told The Australian this morning.
“I genuinely believe Jane is a star — the ideal candidate to come in and take the company to the next level.”
Mr Hrdlicka, the boss of Qantas’s loyalty division and the former chief executive of its budget carrier Jetstar, is expected to leave the airline in March before taking over as chief of a2.
She will succeed Mr Babidge, who will retire from his role during 2018 after seven years as CEO and 10 years leading the firm’s Australian business.
Ms Hrdlicka, a former Bain consultant who reportedly put her hand up for the Woolworths CEO role in 2015, was previously on the Gordon Cairns-chaired board of the retailer but resigned in February last year.
At Bain, she was a senior partner in the firm’s customer strategy and marketing practice.
Under a Qantas (QAN) management restructure announced in August, Ms Hrdlicka took over the running of the Qantas loyalty business last month after running budget carrier Jetstar for the past five years.
She was replaced at Jetstar by Gareth Evans, who was previously Qantas chief financial officer and has most recently run its international and freight operations as stand-alone divisions within the group.
It is understood Qantas chief executive Alan Joyce was informed by Ms Hrdlicka of her plans on Tuesday evening after she was approached by head hunter Russell Reynolds several months ago, as it quietly pursued a global search for a successor to Mr Babidge.
It is believed Russell Reynolds was appointed more than six months ago to undertake a global search for Mr Babidge’s successor.
Mr Babidge confirmed a2 (A2M) started work on finding his replacement “7-8 months ago”.
“Jane’s name came up through process, we started discussions and she became motivated about joining us,’’ he said.
“She took time to consider her position and her interest built over a period of time as we started to engage and discuss the company.”
He said Ms Hrdlicka would complement a2’s highly competent existing management team.
“The real question now is to take the company to the next level. I expect we will exceed $1bn in revenue. We are very close to being admitted to top 100 for the ASX. We continue to grow ahead of expectations and we expect that to continue for the foreseeable future.’’
Mr Joyce said after today’s announcement: “Jayne has made a tremendous contribution to the Qantas Group, and particularly to Jetstar, over the past seven years. Jetstar is now one of the world’s leading low cost carriers and has delivered a series of record profits. Jayne has been instrumental in the expansion of Jetstar in Asia and she leaves with our best wishes for her next challenge.”
Mr Joyce said an appointment to the role of Qantas Loyalty CEO was expected to be made in due course next year.
Mr Hrdlicka is expected to stay at Qantas until March and commence her role at a2 at the start of the 2019 financial year. Mr Babidge has agreed to be available until December 2018 to assist Ms Hrdlicka and the a2 board with the transition.
A2, one of the best performers on the Australian sharemarket over the past year, sells milk and infant formula that only contains the A2 protein and claims that A2-only milk can be consumed by those who struggle to drink normal milk.
It has consistently upgraded its revenue and earnings forecasts underpinned by booming demand for its milk and infant formula products, especially in China and Chinese shoppers in Australia known as daigou.
Ms Hrdlicka’s appointment follows the reorganisation of the a2 executive leadership team earlier this year, which included the appointment of a likely heir apparent to Mr Babidge, Peter Nathan, as chief executive Asia Pacific.
It is understood Mr Nathan, Mr Babidge and members of the a2 executive team were actively engaged in the succession planning and recruitment process undertaken by the board and that Mr Nathan remains comfortable remaining in his Asia Pacific role.
In August, a2 revealed that its board was working with Mr Babidge on succession planning (he turns 65 next year), but stressed there were no plans or timetables in place for his departure.
Commenting on Ms Hrdlicka’s appointment, the chairman of a2, David Hearn, said she would be “focused on continuing to build both the high performance of the business and the culture of the a2MC senior leadership team to support the Company’s growth strategy across a broader nutritional products platform in both its established and new markets’.”
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