Dairy giant Fonterra stays in black despite pandemic

WELLINGTON (AFP) – New Zealand farming giant Fonterra posted a 9.1-per-cent fall in yearly profits yesterday, with the world’s largest dairy exporter describing it as a strong result in a global pandemic.

The cooperative announced an annual net profit of NZD599 (USD420) million for the 12 months to July 31, down from NZD659 million the previous year.

The result continues a successful turnaround after years of heavy losses for Fonterra that prompted it to refocus on its New Zealand operations, writing off hundreds of millions of dollars in investments in China.

Chief Executive Miles Hurrell said the revamp was ongoing, with Fonterra looking to sell its Soprole business in Chile and possibly float Fonterra Australia, while retaining a significant stake.

Fonterra announces an annual net profit of NZD599 million. PHOTO: NZHERALD