White gold

White gold The market value of Fonterra’s equity is $10.6 billion.  Fonterra’s NPAT in FY17 was $745 million.  That gives the company a P/E multiple of 14. The market value of The a2 Milk Company’s equity is now $6.1 billion – almost 60% of Fonterra’s. a2 Milk’s NPAT in FY17 was $91 [...]

2020-09-15T22:11:31+00:00September 15th, 2020|Agribusiness, Investment Strategy|Comments Off on White gold

Small dairy players on the rise

Smaller dairy players on the rise Which dairy companies are performing the best? The second edition of the TDB Dairy Companies Review points to strong performance from a number of Fonterra’s smaller rival firms with Fonterra losing market share as a consequence – now down to 82% from 96% back in 2001. [...]

2020-09-15T22:21:38+00:00September 14th, 2020|Agribusiness, Investment Strategy|Comments Off on Small dairy players on the rise

Fonterra: a long-run financial assessment

Fonterra: a long-run financial assessment As part of its current review of the Dairy Industry Restructuring Act (DIRA) the government asked whether the intended benefits of the 2001 industry restructure have been realised. While parts of the industry have flourished (eg, A2 Milk, Synlait and Open Country Dairy), Fonterra’s financial performance has [...]

2020-09-15T05:45:27+00:00March 3rd, 2020|Agribusiness, Strategic reviews|Comments Off on Fonterra: a long-run financial assessment

New Zealand Dairy Companies Review

New Zealand Dairy Companies Review In TDB's Dairy Companies Review for the 2018 financial year, we looked closely at Fonterra’s performance in comparison with other NZ dairy processing companies. The transparency of Fonterra’s different businesses has improved, allowing us to analyse the performance of the company’s ingredients segment alongside its value-add segment. [...]

2020-09-15T21:52:32+00:00March 3rd, 2020|Agribusiness, Strategic reviews|Comments Off on New Zealand Dairy Companies Review

Fonterra – What’s going on?

Fonterra - What's going on? With a reported loss of more than $590 million and no dividends for shareholders this coming year, how did Fonterra get this far down? Is the cooperative a victim of its own size, past success, structure or strategy? In a recent interview on Radio NZ, TDB Director [...]

2020-02-25T03:28:03+00:00August 29th, 2019|Agribusiness, Strategic reviews|Comments Off on Fonterra – What’s going on?
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