WEBVTT - Quick bite: Global tensions & local pressure–Fonterra's 2025 challenges

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<v Speaker 1>You're listening to a share these podcast, what do you

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<v Speaker 1>see for twenty twenty five? Anyway, the main challenges are

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<v Speaker 1>head fourth on terror.

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<v Speaker 2>Yeah, I think the geopolitical landscape that we see ourselves,

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<v Speaker 2>and you know, we've been dealing with us, as I say,

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<v Speaker 2>for a long long time. But yeah, the situation it's

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<v Speaker 2>playing out in gars of the situation that's been playing

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<v Speaker 2>out in Ukraine. You know, the elections that we've seen

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<v Speaker 2>in North America. All these things you know, have have

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<v Speaker 2>have seen more come to light, I guess in a

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<v Speaker 2>relatively short period of time. So making sure we're nimble

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<v Speaker 2>enough for that, having a strong balance sheet to withstand

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<v Speaker 2>any shocks that come our way, really strong customer partnerships,

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<v Speaker 2>and so despite all these things that go on around us,

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<v Speaker 2>you know, people still need to eat, people still need

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<v Speaker 2>to consume, and if things get hard, you know, having

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<v Speaker 2>the wrong relationships and place globally could sit you back.

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<v Speaker 2>But if you've got these partnerships, the custom partnerships that

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<v Speaker 2>have been around for a long long time, they will

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<v Speaker 2>stand some good stead we believe to get us through.

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<v Speaker 2>And then you know, it sounds simple, but the diversification

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<v Speaker 2>of our markets, you know, is you know, while there

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<v Speaker 2>are some markets that we may struggle to deal sometimes

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<v Speaker 2>because it can be a little bit tough and getting

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<v Speaker 2>cash out of them, or they may speak a different language,

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<v Speaker 2>whatever it may be. You know, just having the boots

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<v Speaker 2>on the ground to be able to deal with those

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<v Speaker 2>markets and those customers because at certain times you need them,

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<v Speaker 2>and so that's important for us and something that's helplesus

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<v Speaker 2>to date in terms.

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<v Speaker 1>Of investors, for Cheesys and investors anyway. I mean, I

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<v Speaker 1>probably should explain that there are the two types of

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<v Speaker 1>Fontierra shares. Is the co op she is if CG

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<v Speaker 1>I think it is, and then you've got the Fontierra

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<v Speaker 1>she hold a fund with the if IF three fund,

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<v Speaker 1>which is probably what most shares these investors will be

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<v Speaker 1>thinking about. Obviously, investors always look at the outlook and

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<v Speaker 1>where a company is going. China obviously being talked about

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<v Speaker 1>a lot. You've got the farm gate price, those sorts

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<v Speaker 1>of things. The outlook. I think you gave some guidance

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<v Speaker 1>back in December, and it would seem fairly as you say,

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<v Speaker 1>record highs for that farm gate price. Is there anything

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<v Speaker 1>our set's helpful for investors to understand in terms of

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<v Speaker 1>you know, where a company might be headed.

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<v Speaker 2>I mean, look, it's no secret that we went through

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<v Speaker 2>some pretty tough times to go back to twenty seventeen

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<v Speaker 2>eighteen nineteen, and we had to sort of do things

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<v Speaker 2>differently and we've talked a bit about that, and you know,

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<v Speaker 2>as a result, our year for us took a hit,

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<v Speaker 2>and probably rightly so. But hopefully in the last two

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<v Speaker 2>or three years, you know, we're showing our investors, we're

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<v Speaker 2>shown our hearholders, We're shown that the unit holders that

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<v Speaker 2>you know we stand up and say we're going to

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<v Speaker 2>do something, we get on and do it. We are delivering.

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<v Speaker 2>Our performance has shown that we're delivering and despite a

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<v Speaker 2>record high milk price, you know, earnings and the earnings

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<v Speaker 2>persh year guidance that we've got out there is also

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<v Speaker 2>pretty good. We've increased our dividend policy which also shows

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<v Speaker 2>that there's a half decent yield there as well. So

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<v Speaker 2>all those things hopefully give some confidence to the sharholder

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<v Speaker 2>community that we're here for all our stakeholder groups, which

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<v Speaker 2>includes farmers, unit holders. Clearly the New Zealand and public

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<v Speaker 2>have an interest in what we do, and Wellington obviously

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<v Speaker 2>like to take a bit of interest from time to time.

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<v Speaker 2>So you know, we understand the role that we play,

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<v Speaker 2>but you know, hopefully the performance to date, the clarity

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<v Speaker 2>of our strategy and where we're heading, gives that confidence

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<v Speaker 2>that unit holders and shoeholders have in their business.

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<v Speaker 1>So your March results are coming soon, and who knows,

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<v Speaker 1>we can't expect too many surprises, but you're pretty confident

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<v Speaker 1>that things are steady in tracking along.

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<v Speaker 2>Yeah, so that finished over the weekend the thirty. The

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<v Speaker 2>end of January was the end of the half years,

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<v Speaker 2>and so yeah, we're expected to come out in mid

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<v Speaker 2>March with what those results look like. And so yeah,

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<v Speaker 2>there's nothing that to get away from our guidance out

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<v Speaker 2>there at the moment of forty to sixty cents and

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<v Speaker 2>a milk price of ten dollars midpoint.

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<v Speaker 1>Investing involves the risk you might lose the money you

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<v Speaker 1>start with.

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<v Speaker 2>We recommend talking to a licensed financial advisor. We also

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<v Speaker 2>recommend reading product disclosure documents before deciding to invest.