FCG
02/07/2015 09:14
GENERAL
NOT PRICE SENSITIVE
REL: 0914 HRS Fonterra Co-operative Group Limited
GENERAL: FCG: Fonterra Updates Progress of its Business Review
Fonterra Co-operative Group Limited today provided an update on the business
review it announced in March this year.
Fonterra Chief Executive Theo Spierings said the purpose of the review is to
ensure that Fonterra is best placed to respond to a rapidly changing global
environment.
The initial phases had looked at the entire business in detail and had
identified potential areas, including significant initiatives in procurement,
business operations and working capital, where the Co-operative can unlock
increased value for its owners.
The Co-operative's leadership is now building these opportunities into
defined plans that will drive further improvement across the business, allow
Fonterra to fund its growth strategy and deliver stronger results.
"We have the right strategy and the long term future of dairy is sound,
however the world is changing and global dairy markets are increasingly
volatile. To keep ahead of the game, we need to be more agile, reduce costs
and generate value," he said.
As part of the review, Fonterra has begun consulting staff on proposals to
streamline its business structures. The consultation is being conducted
globally starting with the Co-operative's procurement, finance, information
services, human resources, strategy and legal functions. Other parts of the
business will follow in the coming months.
Fonterra will provide an update on the impact to its business structures
following completion of consultation, which is expected later in July.
-ENDS-
For further information contact:
Abhy Maharaj
Director Equity Markets
Phone: +64 21 879 458
Or
Dan Wrigley
Communications Manager
Phone + 64 21 820 679
End CA:00266518 For:FCG Type:GENERAL Time:2015-07-02 09:14:23
