Multiplus Plunges as CEO Resigns a Day Before Earnings Release

Multiplus SA (MPLU3), the frequent-flier unit of Latam Airlines Group SA’s Brazilian subsidiary, declined to its lowest level in almost two years as its chief executive officer resigned a day before the release of earnings.

The shares plunged 7.2 percent to 25.89 reais at 12:26 p.m. in Sao Paulo. A close at that level would be the lowest since October 2011. The drop was the biggest on the BM&FBovespa Small Cap index, which dropped 0.5 percent.

CEO Eduardo Campozana Gouveia is leaving Multiplus by Aug. 30, according to regulatory filing today. His departure follows the resignation last month of Chief Financial Officer Sandoval Martins Pereira. The company is scheduled to report quarterly results tomorrow.

Gouveia’s decision to resign is personal, Chairman Antonio Rios said today in an interview. The departures are an “unfortunate coincidence,” and the process to find a replacement is under way, he said. The second-quarter figures hold “no surprises,” according to Rios.

The Sao Paulo-based company is expected to report adjusted net income of 54.7 million reais for the second quarter, according to data compiled by Bloomberg. That compares with a 43.3 million reais adjusted profit a year ago. Multiplus has missed earnings expectations for the past two quarters.

To contact the reporter on this story: Julia Leite in New York at jleite3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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