Fonterra CFO on Full-Year Earnings, Dividend, China Strategy

Fonterra CFO on Full-Year Earnings, Dividend, China Strategy

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Business

University

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The transcript discusses the FY18 annual results, highlighting a $196 million loss due to one-time events and disappointing operational performance. Despite a strong milk price, the company plans a strategic review of assets, considering all options for improvement. Dividend resumption depends on earnings and debt management. China remains a key market, with mixed results in consumer business and farms. The company aims to improve performance and capital structure, focusing on realistic earnings forecasts and value-added products.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What were the main reasons for the company's $196 million loss in FY18?

One-time events like the Danone arbitration settlement

Increased competition

High operational costs

Decreased milk production

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the company's approach to improving its future earnings?

Focusing on divestments only

Going back to basics and improving forecasting

Increasing milk prices

Expanding into new markets

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How important is the China market to the company?

It represents 10% of the business

It is not a significant market

It represents 25% of the business

It is a declining market

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the company's strategy for dealing with its investment in Beingmate?

Sell the investment

Increase the stake

All options are on the table

Exit the investment

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the company's stance on its capital structure?

Reducing capital investments

Planning to change it soon

Switching to a different structure

No plans to change it

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the company's target improvement in earnings for the next year?

30 to 40 cents

15 to 25 cents

25 to 35 cents

10 to 20 cents

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What percentage of milk is being sold as high-value products?

30%

50%

42%

45%