Page 30 - Food & Drink Magazine Nov-Dec 2018

AUSTRALIA’S TOP 100 FOOD & DRINK COMPANIES 2018
SPONSORED BY
ABBREVIATIONS
O Overseas NL Non-listed P Publicly listed Pty Proprietary/private C Co-operative
FONTERRA CO-OP GROUP
Fonterra re-evaluates
▼ Revenue down ▲ Revenue up
1
REV UP/DOWN
TYPE
REV $M
PERIOD
PREVIOUS REV $M
AT THE HELM
▲
PC
18934
07/18
17863
Miles Hurrell
2
FONTERRA is a New Zealand- based multinational dairy company owned by New Zealand dairy farmers. It sources most of its revenue from the collection, manufacture, and distribution of milk and dairy products, and it exports to 140 countries.
This year Fonterra reported a $NZ196 million loss, the first in its seventeen-year history, due largely to the write down of its investment in Chinese company Beingmate and a legal settlement with French yoghurt maker Danone over the whey protein recall of four years ago. Last year Fonterra posted an
JBS AUSTRALIA
$NZ745 million profit.
“There’s no two ways about it,
these results don’t meet the standards we need to live up to. In FY18, we did not meet the promises we made to farmers and unitholders,” Fonterra CEO Miles Hurrell said at the time.
“At our interim results, we expected our performance to be weighted to the second half of the year. We needed to deliver an outstanding third and fourth quarter, after an extremely strong second quarter for sales and earnings – but that didn’t happen.”
Hurrell cited four main reasons
for the company’s poor performance – optimistic forecasting, high butter prices, the increase in the forecast Farmgate Milk Price late in the season, and higher operating expenses in some parts of the business that were based on delivering higher earnings than the company achieved.
The company has outlined a three-pronged action plan that involves re-evaluating all investments, major assets and partnerships; lifting its financial discipline to reduce debt and improve return on capital; and using more realistic forecasts.
REV UP/DOWN
TYPE
REV $M
PERIOD
PREVIOUS REV $M
AT THE HELM
▲
O Pty
5768
12/17
5662
Brent Eastwood
JBS looks to the future
JBS Australia, a subsidiary of foreign-owned private company Industry Park, has kept its place at number two and the company reported its processing operations in Australia and the US were among the better performers during the second quarter in JBS’s global business financial results.
The company makes its revenue from the operation of meatworks and marketing of beef and small stock, by-products and cattle feed lotting, and is also involved in commodity trading and the production of smallgoods. The
ultimate parent company of JBS Australia is Brazil-based meat processing company JBS SA.
Demonstrating the company’s ongoing commitment to sustainability, the JBS-owned meat processor Primo Smallgoods recently unveiled plans to cover 75 per cent of its Brisbane facility rooftop with solar panels in what’s set to become one of Australia’s largest commercial solar energy systems.
“JBS globally has set sustainability targets to achieve by 2020. These targets cover water,
gas, electricity and
greenhouse gas emissions amongst others. As part of the JBS business, Primo has a part to play in the reduction of our environmental impact in Australia,” Primo Smallgoods chief operating officer Bruce Sabatta said.
Primo Smallgoods says the 3.2MW rooftop array at its Wacol plant will take up the size of more than six football fields. Primo said it decided to implement the 3.2 megawatt solar panel system to maintain a sustainable business
and future, and adds other sustainable practices in place at the feedlots and processing facilities of its parent JBS, from water consumption, biogas recovery, greenhouse gas reduction, and waste recycling.
30 | Food&Drink business | November-December 2018 | www.foodanddrinkbusiness.com.au