New Zealand co-op Fonterra has reported a more than 50% increase in operating profits to $1.43bn (€932m) for its 2015/16 financial year, as margins widened to a very healthy 8.3%. Net profit after tax increased 65% to $834m (€545m), while lower global dairy commodity prices saw revenues fall by 9% to $17.2bn (€11.2bn).
Fonterra said the volumes of milk supplied by farmers increased 4% to 23.7bn litres, despite reduced stocking rates and less supplementary feeding. The processor is forecasting a 3% decline in supply for the coming milking season. In recent years, Fonterra has been moving away from a concentrated commodity powder player, to moving more milk into higher-returning consumer and foodservice products. Last year, Fonterra’s consumer and foodservice division processed an extra 380m litres, bringing total volumes in this business up to 4.9bn litres.
The group said there was strong growth in foodservice sales, which helped boost profits (EBIT) in this division by 42% to $580m.
ADVERTISEMENT
Register for free to read this story and our free stories.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
New Zealand co-op Fonterra has reported a more than 50% increase in operating profits to $1.43bn (€932m) for its 2015/16 financial year, as margins widened to a very healthy 8.3%. Net profit after tax increased 65% to $834m (€545m), while lower global dairy commodity prices saw revenues fall by 9% to $17.2bn (€11.2bn).
Fonterra said the volumes of milk supplied by farmers increased 4% to 23.7bn litres, despite reduced stocking rates and less supplementary feeding. The processor is forecasting a 3% decline in supply for the coming milking season. In recent years, Fonterra has been moving away from a concentrated commodity powder player, to moving more milk into higher-returning consumer and foodservice products. Last year, Fonterra’s consumer and foodservice division processed an extra 380m litres, bringing total volumes in this business up to 4.9bn litres.
The group said there was strong growth in foodservice sales, which helped boost profits (EBIT) in this division by 42% to $580m.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS