Strong buyer interest in Fonterra’s consumer business

- colombogazette.com

Fonterra, which is selling its Sri Lanka business, says it has received “a high volume of interest” from potential buyers for its consumer and associated businesses.

“It’s still early days in this process, and we commit to providing farmer shareholders, unit holders, our people and the market updated on new developments as they occur,’ says Fonterra chief executive Miles Hurrell.

“We are also progressing work on our updated strategy and expect to share further detail over the coming months,” says Mr Hurrell.

Earlier this month, the co-op announced plans to divest, either fully or partially, its consumer business that includes iconic brands like Anchor, Mainland, Kapiti and Perfect Italiano.

The consumer and associated businesses that are being put on the block – which include Fonterra Oceania and Fonterra Sri Lanka – collectively utilised approximately 15% of the co-op’s total milk solids and represented approximately 19% of Fonterra’s group operating earnings in the first half of the 2024 financial year.

Hurrell provided an update on the divestment plan during its third quarter result announcement this morning.

“Following our announcement earlier this month of a step-change in our strategic direction, we have received a high volume of interest from parties looking to be involved in the potential divestment of our Consumer and associated businesses,” he says.

Meanwhile Fonterra announced profit after tax from continuing operations of $1 billion, up $20 million from last year or equivalent to 61c per share.

This result is driven by continued strong earnings across all three of the co-op’s product channels.

Hurrell says the co-op’s Foodservice and Consumer channels had a strong third quarter with a lift in earnings compared to the same time last year.

“As a result of this performance, we have lifted our forecast FY24 continuing operations’ earnings range to 60-70 cents per share, up from 50-65 cents per share,” says Hurrell.

The co-op has retained its current season forecast Farmgate Milk Price midpoint at $7.80/kgMS while range has been narrowed to $7.70-$7.90/kgMS.

For the new season starting June 1, it has announced a forecast range of $7.25 to $8.25/kgMS, with a mid-point of $8/kgMS. (Rural News / Colombo Gazette)

You may also like

- adaderana.lk

Sri Lanka s year-on-year GDP growth rate for the first quarter of 2024 has been estimated as 5.3% of positive growth rate, according to the Department of Census and Statistics.

- island.lk

The Maligakanda Magistrate’s Court today [14] ordered that former Minister of Health Keheliya Rambukwella and seven others be further remanded until June 28 by over the import of substandard human Immunoglobulin vials.  

- island.lk

More than 1.5 million Muslim pilgrims have gathered in Saudi Arabia’s Mecca for the start of Hajj, taking place this year against the harrowing backdrop of Israel’s continued onslaught on the Gaza Strip. The annual pilgrimage began on Friday with crowds of robed worshippers circling the Kaaba, the black cubic structure at Mecca’s Grand Mosque, […]

- adaderana.lk

Former Minister of Health Keheliya Rambukwella and 07 others have been further remanded until June 28 by the Maligakanda Magistrate s Court over the import of substandard human Immunoglobulin vials.

- island.lk

President Ranil Wickremesinghe officially launched www.publiclearn.lk a new education platform aimed at transforming Sri Lanka’s learning landscape at the Chamber Hall of the Presidential Secretariat, on Thursday [13] Public Learn is a platform that guides users to free courses from the world’s top universities. . Emphasizing the importance of adapting to a knowledge-intensive society, the […...

- island.lk

Florida is in the midst of a tropical disturbance  that has brought intense rainfall. And there’s no respite for the remainder of the week. A flash-flood emergency in the region threatens to wash out the entire leg of matches at Central Broward Park. Two days ago, Nepal vs Sri Lanka was washed out before there […]

Resources for Sri Lankan Charities:View All

How important are accountability and transparency for a charity to receive international donations
How important are accountability and transparency for a charity to receive international donations

Sri Lankan Events:View All

Sep 02 - 03 2023 12:00 am - 1:00 am Sri Lankan Events - Canada
Sep 09 2023 7:00 pm Sri Lankan Events - Australia
Sep 16 2023 6:00 pm - 11:30 pm Sri Lankan Events - USA
Oct 14 2023 8:00 am Sri Lankan Events - UK

Entertainment:View All

Technology:View All

Local News

Local News

Sri Lanka News

@2023 - All Right Reserved. Designed and Developed by Rev-Creations, Inc