Revamped Fonterra to be ‘more capital-efficient’
Fonterra chair Peter McBride says the divestment of Mainland Group is their last significant asset sale and signals the end of structural changes.
Last year the co-operative annlounced four key value targets, including through planned divestments and earnings, returning about $1b in capital to the shareholder base.
To this end, Fonterra flagged the sale of its Soprole consumer business in Chile and a review of ownership of its Australian business.
Fonterra chief executive Miles Hurrell says progress is being made on both fronts.
"Both Soprole and Fonterra Australia as performing well and our priority is to maximise the value of both businesses to the co-op," says Hurrell.
"We will take our time to ensure the best outcomes from these processes and remain confident on delivering on our intention to return around $1 billion of capital to our shareholders and unit holders by F24."
Hurrell says their teams are always looking to drive demand for New Zealand milk by developing new ways of using our products in local cuisine to find the next big food trend.
In Greater China, using the power of social media, the team promoted the idea of mozzarella on dumplings. The dish gained huge attention and sparked a new trend in the lead up to the Lunar New Year, says Hurrell.
"In the Middle East, Fonterra team launched Red Cow - a more affordable range of products we sell direct to customers, such as bakeries, to help us capture a greater share of the foodservice market."
