It will disclose results in three geographical divisions: Asia and the Pacific, Greater China, and Africa, Middle East, Europe and North Asia and the Americas.
Each geographical division will contain different parts of the previous businesses – consumer, foodservice and ingredients – and, therefore, the reports will be more detailed.
In 2020, the Ingredients normalised gross profit was $1.6 billion, up 11% on the previous year and all three regions contributed positively at that level – Australia, New Zealand and Prolesur, Chile.
Total sales revenue in Ingredients was $17.36bn, up 7% on the year before.
Sales volume fell by 3% due mainly to the decline of 12% in the Australian milk collection.
The gross margin for ingredients increased from 8.9% to 9.3% because of favourable product mix and pricing in the second half of the year.
Total normalised earnings before interest and tax (Ebit) for Ingredients was up $37 million to $827m and the 2019 Ebit contained $44m contribution from DFE Pharma, a business since sold.
The NZ normalised Ingredients Ebit was steady at $842m and Prolesur broke even, up $16m on the year before.
The Australian Ebit continued to be negative $25m, but Fonterra’s chief executive officer Miles Hurrell said the company was comfortable with its milk supply and processing assets in Australia.
The Consumer and Foodservice division sold a slightly smaller volume of products and maintained sales revenue at $6.9bn.
As the cost of goods sold remained steady, the gross profit was down a small amount to $1.44bn.
Normalised Ebit fell by 13% to $357m.
Fonterra did report on the Consumer and Foodservice performances split into geographical regions: Greater China, Asia, Oceania and Latin America.
Overall Foodservice sales revenue was steady at $2.6bn and normalised Ebit was up 14% to $209m.
China’s Ebit was $169m (up 49%), Asia $23m and Oceania $16m, down 35% and 43% respectively compared with the year before.
Sales volumes were down 44% in the second half due to covid-19 lockdowns in NZ and Australia.
“Our Asia markets remain challenging as many borders remain closed due to covid-19,” Fonterra said in the annual report.
Consumer sales revenue was steady at $4.2bn and the gross profit was $1bn.
Total Ebit was down 35% to $149m and the reductions occurred across the geographical regions – Asia down 12%, Oceania down 28%, Latin America down 22% and Greater China made a loss of $21m compared with a similarly sized profit in 2019.
Among the reasons given were the civil unrest in Hong Kong, lower sales of Anlene and Anmum in that market, travel restrictions on tourists and the impact of half of the $38m impairment on the Chesdale brand.
Because China Farms has been put up for sale, Fonterra reported its performance in the discontinued operations section.
With a 14% increase in revenue the division was able to show an 11% normalised Ebit.
The average local milk price received was the highest in the past five years.
