Multiplus SA, the frequent-flier unit of Latam Airlines Group SA’s Brazilian subsidiary, declined to a two-year low after its chief executive officer resigned a day before the release of earnings.
The shares plunged 11 percent to 24.90 reais today in Sao Paulo, the lowest since August 2011. Trading volume was 6.6 times the three-month daily average. The drop was the biggest on the BM&FBovespa Small Cap index, which declined 0.7 percent.
CEO Eduardo Campozana Gouveia, who will leave Multiplus by Aug. 30, is departing for person reasons, Chairman Antonio Rios said today in an interview, adding that the company is seeking a replacement. His exit follows the resignation last month of Chief Financial Officer Sandoval Martins Pereira. The company may report tomorrow that second-quarter adjusted net income rose 26 percent to 54.7 million reais, according to the average estimate of analysts surveyed by Bloomberg.
“The departure of senior members of the executive team in such a short period clearly raises some red flags about the outlook for the company, and may continue to pressure stock price performance,” Deutsche Bank AG analyst Mario Pierry wrote in a note to clients today.
The second-quarter figures hold “no surprises,” according to Rios. Multiplus has missed earnings expectations for the past two quarters.
Multiplus has tumbled 48 percent this year, while the small cap index has lost 17 percent.