New Zealand-based dairy co-operative Fonterra said net profit fell in the year to July 31 as poor weather hit milk volumes. The world’s biggest dairy supplier said net profit after tax fell 11 per cent to NZ$745m ($524.4m) in the twelve months to end of July, compared to the same period a year earlier. Revenue rose 12 per cent year on year to NZ$19.2bn “Despite lower milk volumes due to poor weather in parts of the season, the business delivered a good result by prioritising higher value Advanced Ingredients and growing our sales of these in-demand and specialised products by 473 million LME [liquid milk equivalent] this year,” Fonterra chairman John Wilson said. Sales volumes rose 9 per cent year on year for advanced ingredients – products including functional proteins and extra-stretch cheese – accounting for 19 per cent of the company’s total external sales volumes. Fonterra shares were up 0.7 per cent in New Zealand.
Source: Financial Times