The dairy giant Fonterra in Wellington, New Zealand reported today morning by a significant increase in income in an extremely challenging global market.
The world's largest exporter of dairy products generated a profit after tax of NZ$ 834 million (previous year: €547 million) in the financial year ending on July 31. This is an increase in profits by 65%. The balance sheet total amounted to 17.2 billion NZ$ or a loss of 9%.
The business strategy to handle more milk to higher-value dairy products and sell, has obviously had an effect. There was a better return could be traced to back loans for capital.
The leverage of the company fell to 44.3% from 49.7%, while the return on capital from 8.9 to 12.4% crop.
The company stressed that milk prices at an unrealistically low level. Livens up the demand and prices rise, so it was for now but well prepared and in the coming year, the result should be even better.
Milk prices on the world market have tentatively improved and the beleaguered industry can relax easily so. On Wednesday, the dairy has their estimate of the price of its 10,500 members for the current season to 5.25 NZ$ raised per kg. In the previous season the price amounted to 3.9 NZ$ / kg.
