Fonterra, Sharesies join to make share trading easier
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
Fonterra shrugged off the effects of COVID-19 in many markets to record a $67 million rise in normalised earnings before income tax (EBIT).
The co-op’s total normalised EBIT for 2019-20 jumped from $812 million to $879 million.
Chief executive Miles Hurrell says the main drivers of the underlying business performance was a strong normalised gross profit in the ingredients business and, although there was the disruption from COVID-19, the strong sales and gross margins from the Greater China foodservice business in the first half of the year.
Ingredients’ normalised EBIT improved from $790 million last year to $827 million this year, with normalised gross profit up $165 million to $1.6 billion.
Hurrell says that at the co-op’s interim results, the normalised gross profit in ingredients was relatively steady.
“As we moved through the second half, we saw restaurants, cafes and bakeries close and intermittent spikes in supermarket sales, creating uncertainty across the global dairy market.
“This uncertainty resulted in softening milk prices, which helped improve the gross margin and gross profit in ingredients.”
Greater China foodservice’s normalised EBIT increased from $114 million last year to $169 million this year.
Hurrell says the business achieved strong year-on-year sales growth in the first half of the year but was then hit hard by COVID-19 when many food outlets were closed. Normalised gross profit started to quickly rebound in the third quarter – although he also points out it is still not at 100%.
“We have seen significant growth across the Anchor Food Professional product range in China.
“We have entered 50 new cities across China, taking our total to 350, and our products are now not only being used in Western-style restaurants and bakeries but also those serving local cuisine.
However, foodservice businesses across Asia, Oceania and Latin America were impacted by COVID-19 in the fourth quarter. All three markets reported losses in the second half.
Despite this, normalised EBIT for foodservice overall was up 14% on last year to $209 million, a result of the strong performance by the Greater China business in the first half.
The consumer business’ normalised EBIT reduced to $149 million from $227 million, mainly as a result of impairments of $57 million relating to the Chesdale brand and New Zealand consumer business’ goodwill.
Hurrell says its Australian consumer business performed strongly with sales continuing to increase thanks to its popular beverage, spreads and cheese products.
“Our New Zealand consumer business focused on improving customer service and keeping supermarket shelves well-stocked, particularly as New Zealanders were stockpiling through COVID-19.”
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Two major red meat sector projects are getting up to a combined $1.7 million in funding from the New Zealand Meat Board (NZMB).
Angus Barr and Tara Dwyer of The Wandle, Lone Star Farms in Strath Taieri have been named the Regional Supreme Winners at the Otago Ballance Farm Environment Awards in Dunedin.
OPINION: The distress that the politicians and bureaucrats are causing to the people of Wairoa and the wider Tairāwhiti is unforgivable.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.