Fonterra 2016 - Revenue: $17,199 NZD (in millions) Gross Profit:...

Fonterra 2016 - Revenue: $17,199 NZD (in millions)
Gross Profit: $3,632 (margin:21%)
Net Profit: $834 (margin:4.8%)
Gearing(total liability/total Asset) =59%


MGC 2016 - Revenue: $2,777 AUD (in millions)
Gross Profit: $411 (margin:14.7%)
Net Profit : $40 (margin: 1.4%)
Gearing(total liability/total Asset) =46%

From a managerial point of view, MGC offers upside in profit margin through cost-reduction and streamlining its supply chain. Despite of the size of Fonterra, MGC margin can potentially be achieved at slightly less than its counterpart (e.g. at 3to 4% range for Net Profit Margin)
Fonterra is on a higher gearing ratio. MGC debt seems manageable.

The potential improvement of 2 to 3 percents in net profit margin, offering an increase in profit of between $50 and 80 millions. (almost double the current profit)

Let's scrutinize the managers and see how much their wages and bonus translate into real operational improvement.