Earnings News

Fonterra Asks for Time to Finalize Accounts After Losses, Write-Downs

New Zealand’s Fonterra Friday sought more time to finalize its annual outcomes, adding to skepticism around the dairy titan’s scope after it took massive write-downs and calculated its worst-ever loss.

The world’s largest dairy exporter is below the scrutiny of New Zealand’s monetary regulator after it shocked markets in August with a write-down of up to NZ$860 million ($550 million) for its assets in Brazil, China, and other international locations, and said it was on track to publish an annual loss of as up to NZ$675 million. It further mentioned it would not give a dividend this year.

Fonterra was about to report results on Sept. 12; however, said due to the number of write-downs, its accountant, PricewaterhouseCoopers, needed additional time to audit the financial statements.

The earnings were anticipated to provide clarity on the exact levels of the write-downs to date, and steering on Fonterra’s future strategy.

In a tweet following the declaration, Fonterra’s staff said nothing unusual had led to the change of date; however, the regular auditing process was taking longer than usual.

Industry specialists and analysts think Fonterra might have to write down extra assets.

Fonterra has maintained that the write-downs were consistent with market disclosure obligations and that its financial statements have been separately audited.

Losses in the 2018 financial year caused Fonterra to start a global evaluation to evaluate how each of its assets and joint ventures supported the corporate’s strategy and if they were hitting their targets for return on capital.

Arthur Siegrist

By Arthur Siegrist

Arthur has nearly a decade of media experience. Before joining FBI Market News, he ran content operations of several local news journals. He also vast experience stock market, corporate communications, public relations, and digital marketing. Arthur holds a commerce degree from the University of Oakland and a post-graduate degree in English from NYU.