The data shows that in the first quarter of fiscal year 20021,Fonterra achieved a total revenue of NZD 4 1.8 1 billion, with a slight year-on-year decrease of1%; The adjusted earnings before interest and tax reached NZ $250 million (about165438+RMB 50 million), up NZ $72 million year-on-year, with a growth rate of about 40%.
Fonterra said that customers' continuous demand for dairy products and careful management of the supply chain are the main reasons for the company's good performance, while the increase in the company's gross profit is due to the increase in profit margins in Greater China and Southeast Asia, as well as the increase in catering services and consumers.
The purchase price of raw milk rose
As the China market gradually recovered from the epidemic, the demand for dairy products rebounded strongly. However, due to the strong demand from China buyers, especially the demand for whole milk powder, the purchase price of Fonterra raw milk has further increased.
Due to the strong demand for dairy products from New Zealand, Fonterra announced that it has reduced the expected price range for purchasing raw milk from pastures in 2020/202 1 year.
"Raising the price from NZ $ 6.30-7.30 to NZ $ 6.70-7.30 per kilogram of milk solids means that the middle price of the purchase price, that is, the remuneration that dairy farmers will receive, has been raised to NZ $7 per kilogram of milk solids." MilesHurrell, CEO of Fonterra, said, "We see that the demand in the China market continues to recover from the impact of the new epidemic, which was fully reflected in the recent auction of the global dairy trading platform (GDT). The strong purchasing demand of China buyers, especially their demand for whole milk powder, is the key factor to promote the increase in the purchase price of raw milk. "
Hurrell said that the company continued to make progress in implementing the strategy and made a good start in the first quarter of this year. After the adjustment of the Group, the profit before interest and tax reached NZ $250 million, an increase of NZ $72 million over the same period last year.
"The sales volume was the same as that of the same period last year, reflecting the strong demand for dairy products in the market and the result of our efficient management in the supply chain. The improvement of the whole business has increased our adjusted income by 40%. " Hurrell said that as the China market continued to recover from the epidemic, the demand for dairy products rebounded strongly, which helped the catering service business in Greater China achieve excellent performance in the first quarter. "In the first quarter, our catering service business expanded to 65,438+03 China cities, which enabled our business to reach more than 360 cities."
Despite its outstanding performance in the Asian market, Fonterra's performance during the reporting period showed some "regional disharmony"-the decline in sales in Africa and the increase in costs in Europe offset its growth in the Asian region.
China Ranch continues to lose money?
Since the establishment of the first experimental ranch in 2007, Fonterra has built three dairy farming bases in China, which are located in yutian county, Hebei Province, Yingxian County, Shanxi Province and Qihe County, Shandong Province, and cooperated with Abbott.
Fonterra has more than 30,000 cows in China and produces more than 330 million liters of milk every year. According to industry data, Fonterra China Ranch produces high-quality raw milk every year, accounting for 1% of the total milk source in china dairy.
However, due to the poor performance of Fonterra's management team and the exposure of China Ranch's continuous losses, Fonterra has been under great pressure from public opinion, and its investment in Beinmei is almost "lost".
In order to supplement the cash flow and get rid of the burden, Fonterra announced that it would sell its two pastures in Shanxi and Yutian, Hebei and its ranch in Hangu to Inner Mongolia Natural Dairy Co., Ltd. and Beijing Sanyuan Venture Capital Co., Ltd., the subsidiaries of Inner Mongolia You Ran Animal Husbandry Co., Ltd., respectively, for a total price of 555 million New Zealand dollars (2.5 billion RMB).
Since then, the business that lasted for more than a year has been settled. The next step of the transaction is to obtain the anti-monopoly license of relevant departments in China and the approval of other regulatory authorities, which is expected to be completed within this fiscal year.
Selling Ranch 13 years after it was established in China is not only a decision made by Fonterra after full consideration, but also meets the needs of its current global strategic planning.
In this regard, Hurel said that the sale of China's own pasture will help cooperatives to give priority to business areas with competitive advantages. "In the past 18 months, we have been reviewing all aspects of each business to ensure that our assets and investments can meet the needs of today's cooperative development. Selling our own ranch is in line with our decision to focus on New Zealand milk sources. "
Milk powder sampling failed.
As we all know, Fonterra started from a big bag of powder (whole milk powder). Many milk powder enterprises at home and abroad are buying large packages of Fonterra powder and making infant formula milk powder by dry process. Fonterra is also an important shareholder of Sanlu milk powder.
He Fei, Qiqi, Sanyuan, Cradle, Wandashan and Junlebao directly use fresh milk as raw material to produce infant formula milk powder, commonly known as "fresh milk technology". Based on this, He Fei and Junlebao led the strong rise of domestic milk powder, and their market share continued to climb.
But in fact, Fonterra also has its own brand of infant formula in China, such as Mama An. However, due to the unaccustomed channel and marketing, Fonterra is insignificant in the infant formula industry in China.
Recently, the General Administration of Customs released information on food and cosmetics that were banned from entering the country in May 2020. In May 2020, the national customs detected that 173 batches of food safety and hygiene items were unqualified and were not allowed to enter the country.
This time, 1 batch of * * * 75kg full-fat milk powder imported from New Zealand and produced by Fonterra Co., Ltd. was not allowed to enter the country due to unqualified sensory inspection.
In the information of food and cosmetics that were not allowed to enter the country in April 2020, 1 batch of * * * 25kg skim milk powder imported from New Zealand and produced by Fonterra Co., Ltd. was also refused entry due to unqualified packaging.
It is noteworthy that in addition to Fonterra, other imported milk powder frequently appeared on the quality black list, especially French tainted milk powder, which seriously damaged the brand image of imported milk powder to a great extent.
165438+ On June 2nd this year, Guangdong Provincial Market Supervision Administration issued 1 Notice on Risk Control of Batch of Unqualified Food (No.207, 2020). According to the circular, the State Administration of Market Supervision entrusted Guangzhou Inspection, Testing and Certification Group Co., Ltd. to carry out the 2020 food sampling inspection plan of the General Administration. The company sampled "Kangweiduo Holly infant formula milk powder 0-6 months 1" imported by Beijing Shida Global Trade Co., Ltd. sold by Shawan Chendianfei Baby Products Firm in Panyu District, Guangzhou, and detected prohibited substances.
"Imported milk powder is not equal to high quality. Kangweiduo, known as a century-old dairy company, detected prohibited substances, and Fonterra's unqualified milk powder is the best explanation." Insiders told Grains Finance that the domestic milk powder is at the best level in history, and the mainstream brands have passed the random inspection continuously 100%. However, the frequent accidents of imported milk powder will further change the market structure of milk powder in China.
"Domestic milk powder leads the world in many aspects such as milk source, processing, formula, inspection and implementation standards. It is no exaggeration to say that the quality of domestic milk powder is already the best milk powder in the world, not the first but it must be one of the best. " Song Kungang, Chairman of the China National Committee of the 3rd International Dairy Federation, said.