Theo Spierings leaves
Fonterra suffers loss due to problems in China
Fonterra suffered a significant loss in the past financial year (from July 2017 to January 2018). The New Zealand Dairy Cooperative records a net loss of New Zealand (NZ) dollars 348 million.
The loss is striking, because Fonterra managed to make a profit of NZ dollar 480 million in the same period last year. The loss can be explained; for example, in 2013 Fonterra became involved in a Chinese baby powder scandal. At the end of 2017, the cooperative had to pay a compensation claim of NZ$183 million to the French dairy Danone.
29,70
euro
In addition, Fonterra paid NZ 405 million for a 19% share in the Chinese milk powder producer Beingmate† Chairman John Wilson understands that dairy farmers are disappointed with the result. Still, Wilson thinks it's excessive to grieve, because without the incidents Fonterra notes a profit of 248 million NZ dollars.
The lower profit translates into a dividend forecast of 0,25 to 0,35 NZ dollars, a level last achieved in 2014/2015. The forecast for the milk price goes to 6,55 NZ dollars per kilo of Milk Solid (MS). Translated into an amount in euros (at 4,4% fat and 3,3% protein), the milk price, including dividend, amounts to €29,27 to €29,70 per 100 kilos.
Spierings greetings off
After being CEO of Fonterra for 7 years, Dutchman Theo Spierings has called it quits. The CEO will retire, but will probably remain involved in the dairy cooperative in the background. It is not yet known who will succeed Spierings.
(1 NZ dollar is €0,58)
The milk price of Fonterra over the past few years.
Wouter Job
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