Fonterra to close Dennington factory

Company News

by Rachael Jones

Fonterra (ASX:FSF) is to shut its Dennington factory in Victoria at the end of November with the loss of almost 100 staff members.

The plant was first opened in 1911 by the Anglo-Swiss company, later rebranded Nestle.

They have also lower the range of its 2018-19 forecast farmgate milk price to between $6.30-$6.40 per kilogram of milksolids, and forecast for the new season a range of between $$6.25-$7.25 per kg/MS.

Although sale volumes were up 4 per cent for the third quarter to $16.6 billion liquid milk equivalents, and revenue is up 1 per cent to $15 billion, gross margin is down 3 per cent to $2.2 billion, and normalised EBIT down 9 per cent to $522 million.

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Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.