Fonterra Announces Changes To Management Team – Share Price Tumbled By 2.273%

Fonterra Shareholders' Fund

On 14 December 2018, Fonterra Shareholders’ Fund (ASX: FSF) CEO announced the changes made in the management team.  Mike Cronin will join the managing director who will be responsible for the Co-operative Affairs. Through Co-operative affairs, he will be responsible for bringing together the company’s operations and the farm source team.

The purpose of the changes in the management structure was to streamline to the process by introducing someone with broader experience and skills. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

Mr. Cronin also states that both the teams of the company, i.e., the operations and the farm source teams had a discussion on sustainability, communications, on-farm practices and both have common objectives to work closely on a day to day basis.

FSF, since its inception, has given a negative performance. Its performance in 5 years was -15.87%. The last year’s performance of the company was -24.91%.

In FY2018, FSF was not able to meet its earnings guidance in the second half. There were many reasons. Amongst them, the most important reasons were that Fonterra always faces challenges in forecasting. The other reason was that the prices of butter did not come done as per their expectation which impacted the sales volume and the profit margins. The farmer delayed in forecasting an increase in the Farmgate Milk price which also influenced the profit margin and lastly, the operating expenses also moved up.

As a result of the increased price of milk, FSF was unable to push another 400 million liters of milk into its Consumer and foodservice which led to the reduced margin the company faced challenges to bear the operating cost during the FY2018. Further, the company had to make investments in its research and development and its information technology to support its future growth and development.

From the statement of net asset attributable to the unitholder; there is a decrease seen in the net asset by $193 million in FY2018 as compared to FY2017. The company does not hold any cash and cash equivalent with itself.

After the announcement of FSF’s changes in the management team led the market price of the share to fall by 2.273% which is $0.100 less than the previous day’s closing price.

With the market open on 14 December 2018, the market price of the share was A$4.40 which remains constant regarding day’s highest price. The lowest price for the day was A$4.25 where around 106,632,487 traded on ASX today. The closing price of the share on 14 December 2018 was A$4.30 which is towards the 52 weeks low price, with the stock, reported a market capitalization of A$469.18 million.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report