Core Viewpoint - Fonterra's decision to merge its consumer products team with the food service team in the Greater China region reflects a strategic response to declining performance and aims to enhance efficiency and reduce costs amid a challenging market environment [1][2]. Group 1: Business Performance - Fonterra's revenue in the Greater China region decreased by approximately 9.94% year-on-year, with food service revenue at NZD 2.377 billion and consumer products revenue at NZD 394 million, the latter showing a loss [1][2]. - For the fiscal year 2024, Fonterra's raw materials business generated NZD 3.598 billion in revenue with a post-tax profit of NZD 128 million, while the food service business earned NZD 2.377 billion with a post-tax profit of NZD 299 million. The consumer products segment reported a loss of NZD 15 million [2]. Group 2: Strategic Adjustments - The merger of the two business units is seen as a necessary adjustment due to the poor performance of the consumer products segment, which has struggled in the direct-to-consumer market [2]. - Analysts suggest that this integration reflects the unique characteristics of the Greater China market, where brand recognition and product overlap are significant challenges. The approach prioritizes brand unity and channel efficiency over a global model [2][3]. Group 3: Market Outlook - Fonterra's food service business in the Greater China region is expected to grow, with a revenue increase of approximately 7.46% year-on-year, contributing over 58% to the overall food service revenue [3]. - The shift in consumer preferences towards Chinese-style pastries and beverages presents significant opportunities for Fonterra's dairy products, such as cream and cheese, in the baking and food service sectors [3]. - Following the merger, the new business unit in Greater China is projected to generate over NZD 2.771 billion in revenue, but challenges such as product overlap and team integration remain [3].
恒天然在华业务调整
Bei Jing Shang Bao·2025-07-17 16:33