Fonterra wasn’t expecting ‘strong’ consumer margins to hold up

Fonterra is looking at options for its consumer business. (Image: Getty)

Thu, 30 May 2024

Fonterra was expecting to see "a little bit more" margin tightening in the consumer business it’s now looking at selling.Compared to the second quarter of the financial year, the channel’s earnings before interest and tax (Ebit) increased $11 million to $72m, with its gross margins increasing to 26.5%, up from 25.2% in the three months prior.While that slipped from 28.8% in the first quarter, it’s up from 25.8% compared to the same period last year.On Wednesday, the dairy giant reported a profit after tax from contin...

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