Costa Group announced a new CEO just 18 months ago... but now its CEO suddenly resigned.
👉 Background: Costa Group started way back in the early 1900’s as a small fruit shop in Warrnambool, Victoria and then Geelong
👉 What happened: Since then, it has grown to become the leading wholesaler of fresh fruit and veggies in Australia. It sells everything from blueberries, tomatoes, bananas and avos to supermarkets and fruit shops.
👉 What else: Costa Group announced a new CEO just 18 months ago.. but now its CEO has suddenly resigned. Investors didn't love the news - its share price plummeted 12%. It just goes to show how important stability is at the top of a company.
💡Sudden CEO departures almost always leads to investor uncertainty.. And investor uncertainty almost always leads to a drop in a company's share price.
💡For investors, a sudden departure brings up a range of questions:
💡And Costa Group isn't the first company to take a hit.
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