The fund owned by New Zealand listed co-operative dairy company Fonterra Co-operative Group Limited, Fonterra Shareholders’ Fund announced the appointment of new Managing Director to the People & Culture management team of Fonterra.
In the release dated 18 December 2018, Fonterra Shareholders’ Fund (ASX: FSF) stated that Deborah Capill has been appointed as Managing Director People & Culture on the Fonterra Management Team with effect from 1 February 2019.
Ms. Deborah Capill is currently working in Germany with DHL Group at Deutsche Post for Global Head of Human Resources. She is accredited with expert experience in leading HR role and maintaining a successful track record in delivering solutions to global talent and capability to the business partners.
Fonterra’s CEO Miles Hurrell stated that Deborah’s experience is of vital importance to Fonterra and the company is expected to derive immense benefits under her HR lead. The company further informed that Deborah Capill would return to New Zealand from her existing role in Bonn, Germany to join Fonterra Shareholders’ Fund on 1 February 2019.
However, it is not the only management change that Fonterra has announced recently. Last week, the company also revealed the appointment of Mike Cronin to the role of Fonterra’s Managing Director Co-operative Affairs. This translates the change in Fonterra Management Team (FMT) which has brought Co-op’s current Corporate Affairs and Farm Source teams together.
Mr. Hurrell stated that these two teams share the common objective and have been working in collaboration on day to day basis covering the areas such as communications, sustainability, on-farm practices and a joint remit in reaching farmers to its co-operatives.
The company has downgraded its 2019 guidance for Farmgate Milk Price which is now expected to be within the range of $6.00-$6.30 per kgMS, down from previous $6.25-$6.50 per kgMS. As a result, forecast earnings per share range has been set to 25-35 cents.
John Monaghan, Chairman of Fonterra, stated that decline in expected Farmgate Milk Price range is driven by the headwinds from supply greater than the relative demand for milk. Resultantly, the GlobalDairy Trade index has been drifting downward since May.
Moreover, in an update to the first quarter, Fonterra posted $14 million declines in the gross margin of $646 million when compared to the previous corresponding period. Revenue was down 4% to $3.8 billion, and sales volumes were 3.6 billion liquid milk equivalent (LME), down 6%. However, on a percentage basis, Fonterra’s gross margin increased from 16.6% to 17% for the quarter ended 30 September 2018.
With today’s update on the change in management, Fonterra witnessed the positive market sentiments on ASX. FSF share price edged up by 0.233% to close at $4.310 on 18 December 2018. Its last traded PE was 13.370 x with a market capitalization of $458.52 million. While on the other side, the stock has fallen by 26.24% over the past 12-months.
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