Global Diary Giant to keep Australian business amid fears of partial sell-off

Global Diary Giant to keep Australian business amid fears of partial sell-off

The world’s largest dairy exporter Fonterra has announced it will not sell its Australian business after reporting higher profits and revenues over the past fiscal year.

At an investor briefing on Sept. 22, Fonterra CEO Miles Hurrell confirmed the company’s decision to retain full ownership of its Australian assets, saying it was the best way forward for growth and return on investment.

“We have looked at a number of options for our Australian business and have decided it is in the interest of the cooperative to retain full ownership,” he said.

“Australia plays an important role in our consumer strategy with a number of common and complementary brands.

“The business is doing well and it will play a key role in helping us achieve our strategic goals for 2030.”

Increased profit and income

The announcement was made after reports of growth in the 2021-2022 fiscal year despite many challenges, including supply chain disruptions, higher costs and inflation, as well as the fallout from protests in Sri Lanka.

In particular, the company’s revenue grew 11 percent over the year to NZ$23.4 billion (US$13.64 billion).

While normalized after-tax profit rose one percent to NZ$591 million, Fonterra’s reported net profit fell three percent to $NZ583 million.

The company also turned down a record milk price of NZ$9.30 per kilogram.

A photo taken shows a herd of cows on a dairy farm supplying milk to Fonterra in Waikatoon, New Zealand, on Aug. 13, 2022. (William West/AFP via Getty Images)

Previously, Fonterra, which is owned by more than 10,000 New Zealand farmers, began an assessment of its Australian businesses in 2021 and considered selling some of its stake as the company wanted to refocus on its home market.

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