Expert Says Fonterra Backing Current Strategy With New CEO Appointment
The appointment of Richard Allen as Fonterra's new chief executive signals execution, not strategy, according to agribusiness expert Dr Nic Lees.
The co-op is also forecasting 2023 normalised earnings guidance of 45-60c/share.
Fonterra chief executive Miles Hurrell says the longer-term outlook for dairy remains positive.
“And in the medium-term, we expect to see an easing in some of the geopolitical events, namely the Covid-19 lockdowns in China and the economic challenges in Sri Lanka.
“This has been reflected in our earnings guidance and forecast farmgate milk price for the 2022/23 season.”
Hurrell says the co-op continues to monitor a number of risks.
“The strength of our balance sheet means we remain in a strong position to weather uncertainty and market volatility.
“Our ability to refocus our product mix through our diverse and flexible operations footprint means the co-op’s milk will continue to be delivered to wherever the most value can be obtained for our farmer owners.
“The future for our co-op is exciting,” says Hurrell.
