Reflecting what the company now calls its customer-led strategy under chief executive Miles Hurrell, the three segments are: Asia and the Pacific (APAC), under Melbourne-based Judith Swales; Greater China, under Shanghai-based Teh-han Chow; and Africa, Middle East, Europe, North Asia and Americas, including Latin America (AMENA), under Amsterdam-based Kelvin Wickham.
The previous operating model was based around product channels – global ingredients, consumer and foodservice businesses.
The results for each geographical region will continue to be split into those product channels.
Fonterra says its new reporting model provides an end-to-end view of the performances of each business unit.
For example, a consumer sale in APAC will now include the costs of the base ingredient, such as collection, processing and distribution, plus the added value achieved by turning it into a consumer product.
In the FY21 interim results revenue came in three similar portions; APAC $3.4 billion, AMENA $3.2b and Greater China $3b.
Normalised earnings before interest and tax (Ebit) compared with the previous corresponding period were APAC $190 million, up 9%; AMENA $201m, down 7%; and Greater China $339m, up 38%.
Split the other way, earnings results were ingredients $288m, down 23%; foodservice $258m, up 80%, and consumer $184m, up 56%.
