Dairy cooperative Fonterra is expressing confidence in its future performance despite global uncertainties.
Taking home $1.5 billion in operating profits for its fiscal third quarter, the Kiwi dairy giant has grown its profits by $85 million year-on-year.
“Today, we’ve delivered another strong result,” Fonterra CEO Richard Allen said. “Milk production is up considerably this season, and despite disruption in global supply chains, our sales book is well contracted, and our shipping volumes are strong, with the highest third-quarter shipment volumes in a decade.”
Allen was named CEO following the retirement of 25-year veteran Miles Hurrell, who announced that he would be stepping down in December.
“As we look ahead to next season, we expect milk collections to remain high, in line with this season,” Allen added. “Our in-market sales teams are anticipating solid demand from across the regions despite potential volatility, and this is reflected in our opening forecast range.”
Ahead of its final quarter of the financial year, Allen said he expects momentum to continue.
“We acknowledge the uncertainty caused by the ongoing conflict in the Middle East,” he said. “Like our farmers and others around the world, we are experiencing cost inflation and shipping disruptions. We are confident that our deep relationships with customers and logistics partners will continue to help us navigate these challenges.”
