New Zealand based Fonterra group said it was exploring an initial public offer as well as a sell-off of international businesses including Sri Lanka, as the daily co-operative looks to reduce its involvement in retail sales.
The downstream business has been named Mainland group ahead of a possible listing, with its own Chief Executive and Chief Financial Officer ahead of the possible IPO, Fonterra said.
In the 2024 financial year (ending July), gross profit in its Sri Lanka operations was reported at 106 million New Zealand dollars, up from 90 million dollars in 2023 and 43 million dollars in 2022, when the Sri Lanka rupee collapsed.
Gross profits is before marketing and financial costs or taxes, which determines the net profits.
The Sri Lanka business had strong brands in the form of Anchor and Raththi milk powder as well as other products like yoghurt, as well as sales to the food service sector.
Sri Lanka operations included exports to Bangladesh, the Maldives, Mauritius and Seychelles, the firm said.
Mainland group was meeting investors in a road show to assess the appetite for an IPO as opposed to an outright sale to third parties.
The roadshow meetings will be held in New Zealand, Australia and Asia, and will be led by Mainland Group CEO-elect René Dedoncker and CFO-elect Paul Victor to test the “merits and value” of an IPO.
“We are pleased to be making progress in both the potential trade sale and IPO processes and will continue to keep our farmer shareholders, employees and the market updated on milestones,”
Fonterra CEO Miles Hurrell said in a statement.
The options balances three objectives, of maximising long term value for farmer shareholders, cementing Fonterra’s competitive advantage in Ingredients and Foodservice; and expanding international channels to market for high-quality New Zealand dairy, the firms said.
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇮🇳 eDairy News ÍNDIA: https://whatsapp.com/channel/0029VaPidCcGpLHImBQk6x1F
