Good global markets boost Fonterra

NEW ZEALAND – Fonterra is upbeat about its results for the six months to 30 November, despite a fall in revenue.

The company said that strong international demand and improved commodity prices coupled with a stronger NZ dollar helped the company in the period.

However, revenues for the six months were down $350 million to $5.6 billion compared to the same period in the previous year.

Commenting on the results, chairman Henry van der Heyden said: “We began the year more confident that supply could be better matched with demand, leading to improved prices.” He added: “The strength of the New Zealand dollar meant our international overheads were lower.” He remained upbeat about results for the co-operative’s second half of the year.

Sales volumes also fell but were bolstered by strong ingredients selling prices that contributed over $440 million to revenues over the corresponding period.