Fonterra is “humming” in China, according to a headline in the NZ Herald, although the text of the article beneath it mentioned the “woes” associated with the co-op’s investment in Beingmate.
The co-op is having to absorb an impairment of $405m on the value of its 18.8% holding in Beingmate. On top of the $183m payment it has had to make French giant Danone, the writedown takes the gloss off that otherwise “humming” performance.
Some of its farmer-shareholders may be looking over the fence to the rather different outcome for A2 Milk, which lifted its annual sales 68% in the June year, with revenue rising from $549m in the June 2017 year to $922m. During the latest year A2 Milk achieved gross margins up to 49%. Continue reading “Beingmate has muted Fonterra’s Chinese hum”
“Shane Jones tears strips off Fonterra and says the chairman should ‘catch the next cab out of town’”.
It’s another headline to propel the NZ First Cabinet minister up the political leaderboard. Maybe he’s learning from Donald Trump.
Jones’ latest outburst follows an earlier broadside against another iconic NZ company, Air NZ, suggesting its chairman step down and its CEO stay out of politics.
Is there some connection between the two onslaughts? Could Jones have heard the speculation that Air NZ CEO Christopher Luxon may be on the short list to replace Fonterra’s Theo Spierings (who announced earlier this year he is standing down as CEO after seven years in the job)?
Jones does not shrink from the role of being NZ First’s attack dog. What better way to keep your party (and yourself) in the news?
But this under-estimates Jones as a politician. He is much smarter than that. Continue reading “Assailing corporate leadership helps lift Jones up the political leadership ladder”