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Speaker 1: Seventeen past six. Samras are We Milford Asset Management, Hello.

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Speaker 2: Sam, Evening Heather, Well, jeez, it was a bit.

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Speaker 1: Rough from Catman Do. How did the market received that?

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Speaker 2: I like, I think it would be fair to say

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Speaker 2: investor expectations weren't that high game as the result, and

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Speaker 2: that turned out to be rightly so that the overall

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Speaker 2: performance from Catman Do was soft compared to the prior year.

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Speaker 2: So the business went from declaring a headline reported profit

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Speaker 2: of thirty six million last year to a loss this

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Speaker 2: year of forty eight million, which is really driven by

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Speaker 2: soft training and a pretty decent impairment against one of

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Speaker 2: its businesses. So consequently they didn't declare a dividend given

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Speaker 2: that self performance. If you look at the Catman Do

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Speaker 2: group these days, it includes surf brand and ripkeurl as

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Speaker 2: well as an outdoor full wheel brand called Obo, so

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Speaker 2: not just selling the buffer jackets. Everyone knows. But I

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Speaker 2: think it really was reflective of subdued economic environment across

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Speaker 2: its brands, possibly a bit of increased competition from Macpack

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Speaker 2: within its within the Catman Do business, but also was

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Speaker 2: very consistent across each of the regions it operates. The globally,

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Speaker 2: so not surprising, but really confirms that things are tough

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Speaker 2: out there still for retailers.

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Speaker 1: YEA on Fonterra, I mean, it's come back a wee

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Speaker 1: bit from last year's record, but it's still pretty strong,

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Speaker 1: isn't it.

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Speaker 2: I think it's a very decent contrast to what's going

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Speaker 2: on at Catmandu that the Fonterra results would have kept

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Speaker 2: Farmer shareholders and investors very happy. So they came in

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Speaker 2: and reported earnings and profits at the top end of

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Speaker 2: their prior guidance seventy cents per year. That was down

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Speaker 2: from last year's stellar year, which was eighty cents per year,

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Speaker 2: but it still represents a very good year and well

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Speaker 2: above what they have achieved over the past decades. And

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Speaker 2: they did declare a special dividends which wasn't anticipated by shareholders,

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Speaker 2: of fifteen cents as well, so that shows that the

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Speaker 2: balance sheet as in good shape. If you wanted to

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Speaker 2: be critical, you could say that Fonterra was a little

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Speaker 2: bit cautious in its guidance for the air he had

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Speaker 2: so only really talking in line with long term targets,

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Speaker 2: and they put a pretty wide range on their milk

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Speaker 2: price forecasts well, but it's early in the season season

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Speaker 2: and I'd expect them to adjust that throughout the year.

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Speaker 1: You know, Miles Harrel has made quite a play of

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Speaker 1: the fact that there were going to be some really

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Speaker 1: big changes to Fonterra's strategy under him. Are we starting

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Speaker 1: to see the benefit of those?

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Speaker 2: Do you think yes? I think that's really the key

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Speaker 2: positive out of the Fonterra result and why I think

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Speaker 2: the share price has been performing the way it is

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Speaker 2: is that that strategy, the changes that Miles has put

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Speaker 2: in and as management team, that prioritization and refocus on

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Speaker 2: the core New Zealand business is now clearly beginning to

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Speaker 2: deliver returns for the co ops. So if you look

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Speaker 2: back at the last decade, Fontira had been a real

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Speaker 2: underperform on the share market due to largely ongoing issues

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Speaker 2: across its offshore activities, be at their farms in China,

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Speaker 2: South American Ventures or its global consumer business. So the

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Speaker 2: changes that Miles has made simplifying the business focusing in

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Speaker 2: on that core has made it a lot less volatile,

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Speaker 2: more stable, far easier for investors to understand. The share

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Speaker 2: advice has performed well since, so I think well, done

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Speaker 2: to his management team. They certainly have looked to make

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Speaker 2: some good decisions and it's flying through to the earnings.

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Speaker 2: The challenge for them is to keep it going and

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Speaker 2: judging by what they're saying today, there is further refinement

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Speaker 2: to be made at strategy announcement next week.

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Speaker 1: Sam, it's always good to talk to you. I really

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Speaker 1: appreciate your time mate that Sam Trafur. We have Milford

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Speaker 1: Asset Management. For more from Hither Duplessy Allen Drive.

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