Trailer Magazine


Fonterra lifts financial performance amid business reset

  • Posted on Tuesday 17th, March 2020.

New Zealand–based Fonterra Co-operative Group has confirmed improved financial performance with increased underlying earnings and reduced debt following the release of its interim 2020 results.

The dairy co-operative reported normalised Earnings Before Interest and Tax (EBIT): $584 million NZD (approx. $579.3 million AUD), up from $312 million (approx. $309.5 million AUD).

Total group EBIT: $806 million NZD (approx. $799.7 million AUD), up from $312 million NZD (approx. $309.5 AUD).

Normalised Net Profit After Tax: $293 million NZD (approx. $290.7 million AUD), up from $72 million NZD (approx. $71.4 million AUD).

Reported Net Profit After Tax: $501 million NZD ($497.2 million AUD), up from $72 million NZD (approx. $71.4 million AUD).

Free cash flow: $369 million NZD ($366.2 million AUD), up from $(782) million NZD – or approx. $(776.1) million AUD.

Net debt: $5.8 billion NZD (approx. $5.75 billion AUD), down from $7.4 billion NZD ( approx.$7.3 billion AUD).

Fonterra CEO, Miles Hurrell, said Fonterra has built on the work done in 2019 and has continued to reset its business, introducing a new strategy, reorganising and resizing its teams so there is greater focus on customers, and at the same time, significantly lifting its financial performance.

“We are now a very different Co-op to this time last year – we’re prioritising New Zealand milk and staying focused on what we know we’re good at and what makes a difference to our farmer owners, unit holders, employees and communities.

“While there’s no doubt the world is experiencing an almost unprecedented situation and response to Covid-19, I’m pleased with the progress we’ve made so far against our four priorities for 2020. These are to hit our financial targets, reduce our environmental footprint, build a great team, and support regional New Zealand. By achieving these, we will take strides towards our long-term goals of Healthy People, Healthy Environment and Healthy Business."

(Image: Tasmania-based milk tanker operator, Sarah Brosnan.)

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