Friday, 04 December 2020 09:15

Fonterra delivers solid first quarter results

Written by  Sudesh Kissun
Chief executive Miles Hurrell says he's pleased by the result. Chief executive Miles Hurrell says he's pleased by the result.

Fonterra is reporting a first quarter gross profit of $270 million, up $72m on the same period last year.

Chief executive Miles Hurrell says he is pleased with the progress the co-op has made in the first quarter- from August to October 2020. The co-op has continued to make progress on implementing its strategy.

“Despite ongoing market disruptions from COVID-19, we are continuing to build on the momentum achieved in the last financial year,” he says.

Sales volumes are in line with the same period last year, which was before the full impact of COVID-19.

“This reflects strong demand for dairy and careful management of our supply chain,’ says Hurrell.

“We’ve seen improvements right across our business, which has resulted in a 40% increase in our normalised earnings. There’s been a couple of exceptions to this – Europe, which has been impacted by higher costs, and Africa, which has been impacted by lower volumes as we have shifted product to meet strong demand across Asia.”

Fonterra’s Greater China Foodservice business has been the stand-out performer: demand for dairy in China continued to recover strongly from COVID-19.

The co-op expanded its foodservice business into another 13 cities in China, bringing the total number of cities it operates in to more than 360. 

“And our teams are helping to drive demand by continuously releasing new innovative ways of using our products in local cuisine as they pursue the next big food trend in China,” says Hurrell.

Demand in the Southeast Asia (SEA) Consumer business has improved year-on-year, while the SEA Foodservice business has started to recover as COVID-19 restrictions eased in some markets.

More like this

Featured

Merlo goes greener

Obviously not wishing to get left behind by some of its competitors, Italian manufacturer Merlo is planning to add to its green-liveried telehandler range- with another set of green credentials in the shape of an all-new, all-electric battery-powered Merlo e-Worker model.

 

Growing a family legacy

What started with planting some acacia trees 25 years ago has become a multi-generational passion for the Hunt family in Te Awamutu.

Moves to improve winter grazing requirements

DairyNZ says it supports recommendations to the Government from an advisory group looking to improve winter grazing rules for farmers and achieve better environmental outcomes.

National

Expat workers ready for NZ

Dairy industry recruitment company Rural People Limited is seeing a huge increase in overseas interest to fill New Zealand farming…

Machinery & Products

Kubota ROPS tractors here

Kubota New Zealand product specialist Shaun Monteith says Rollover Protective Structure (ROPS) tractors make up 30% of all tractors in…

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Dung paint

India now has its own cow dung paint, a world-first. 

Fresh for 60 days

A Queensland-based company is set to release its own production of milk this year that stays fresh for at least…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter