MIRA
INFORM REPORT
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Report Date : |
21.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
FONTERRA BRANDS LTD |
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Formerly Known as : |
NEW ZEALAND MILK LIMITED |
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Registered Office : |
9 Princes Street, Auckland |
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Country : |
New Zealand |
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Date of Incorporation : |
12.02.2002 |
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Com. Reg. No.: |
1187224 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Consumer Products
division of Fonterra. The company distributes markets and sells ready-to-use
dairy products throughout the world |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
REGISTERED NAME
FONTERRA BRANDS LTD
Company Number
1187224
Company
FONTERRA BRANDS LIMITED
Incorporated
12-FEB-2002
Current Status
REGISTERED
Entity Type
Company
Constitution Filed
Yes
Annual Return Filing Month
April
Previous Names
Company Name Date Changed
NEW ZEALAND MILK LIMITED 15-DEC-2005
Address Details
Registered Office
9 Princes Street
Auckland
Address for Service
9 Princes Street
Auckland
Directors
Name Date Appointed
COWAN, Guy Michael 08-MAR-2005
29 Woodside Crescent, St Heliers, Auckland
SMITH, Malcolm Wesley 01-SEP-2007
96 Pebblebrook Road, Rd1, Kaukapakapa, Auckland
Share Parcels
Total Number of shares
1,366,409,000
Number of Shares
1,366,408,999
Shareholder(s)
1166320 - FONTERRA CO-OPERATIVE GROUP LIMITED
9 Princes Street, Auckland
Number of Shares
1
Shareholder(s)
1244144 - NEW ZEALAND DAIRY BOARD
9 Princes Street, Auckland
BUSINESS STRUCTURE
TRADING ADDRESS
9 Princes St
AUCKLAND, NZ
TELEPHONE (649) 295 2700
HOLDING ENTITY
FONTERRA CO-OPERATIVE GROUP LTD
BANK
Not determined
EMPLOYEES
Not determined
BACKGROUND
The subject was incorporated in New Zealand on 12 February 2002 as New Zealand Milk Limited, before adopting the current style on 15 December 2005.
The holding entity Fonterra Co-Operative Group Limited was formed on 16 October 2001 when the New Zealand Dairy Board, The New Zealand Dairy Group and Kiwi Co-operative Dairies merged.
Fonterra is
co-operatively owned by New Zealand dairy farmers, representing about 96 per
cent of all dairy farmers in the country.
New Zealand's
dairy industry dates back to 1814, when missionary Samuel Marsden brought a
bull and two heifers into the country. The industry grew steadily, aided by the
temperate climate.
The first
co-operative cheese company was formed in 1871 on the Otago Peninsula. By the
start of the twentieth century, the majority of dairy factories in New Zealand
were owned by co-operatives. Numbers rose to more than 400 by the 1930s.
In 1923 the
Government established the Dairy Export Produce Control Board to control all
dairy exports.
By the 1980s the
Dairy Board had 19 overseas subsidiaries and associated companies, rising to 80
by 1995. The New Zealand Dairy Board had become the world's largest dedicated
dairy marketing network.
New Zealand's
competing dairy co-operatives were forced to work together for the first time
when the Government transferred the Dairy Board's assets to them in 1996.
By the end of
2000 more than 95 per cent of the industry was represented by two major
companies: New Zealand Dairy Group and Kiwi Co-operative Dairies (two smaller
co-operatives held the remaining five per cent).
OPERATIONS
The subject operates as the consumer products division of Fonterra. The company distributes markets
and sells ready-to-use dairy products throughout the world.
Products include
a wide range of products from ready-to-drink milk and nutritional milk powders,
to butter, yoghurt, specialty cheeses and indulgent ice creams.
The subject’s
brands include ANCHOR, TIP TOP, ANLENE, PETERS AND BROWNES, ANMUM,
MAINLAND, FRESH 'N FRUITY, SOPROLE and FERNLEAF.
FINANCES
The subject is not required to lodge financial statements with the New Zealand Companies Office.
During the current investigation, contact with the subject’s principals was unable to be established. Despite messages being left, no reply has been received.
The subject is a wholly owned subsidiary of Fonterra
Co-Operative Group Ltd, the world’s
largest dairy exporter with over 11,000 shareholders.
For the last
financial year ended 31 May 2007, the group recorded consolidated revenue of
NZ$13,882 million which resulted in an operating profit before tax of NZ$98
million and an operating profit after tax of NZ$31 million.
The Fonterra
Brands division of the group recorded NZ$4 billion for fiscal 2007 which
resulted in EBIT of NZ$324 million.
In Australia and
New Zealand Fonterra Brands generated sales of NZ$1.8 billion.
As at 31 May
2007, the group recorded total current assets of NZ$5,399 million. Current
liabilities at this time totaled NZ$3,188 million.
Furthermore at 31 May 2007, the group recorded consolidated Working capital of NZ$2,211 million and a current ratio of 1.7 to 1.
At 31 May 2007, the group recorded consolidated Assets of NZ$12,631 million and Net Assets of NZ$5,016 million.
TRADE SURVEY
During the current investigation, contact with the subjects principals was unable to be established.
Subsequently details pertaining to the company’s suppliers were unable to be obtained and a trade survey could not be conducted.
SUMMARY
The subject was incorporated in New Zealand on 12 February 2002 as New Zealand Milk Limited, before adopting the current style on 15 December 2005.
The holding entity Fonterra Co-Operative Group Limited was formed on 16 October 2001 when the New Zealand Dairy Board, The New Zealand Dairy Group and Kiwi Co-operative Dairies merged.
Fonterra is
co-operatively owned by New Zealand dairy farmers, representing about 96 per
cent of all dairy farmers in the country.
For the last
financial year ended 31 May 2007, the group recorded consolidated revenue of NZ$13,882
million which resulted in an operating profit before tax of NZ$98 million and
an operating profit after tax of NZ$31 million.
The Fonterra
Brands division of the group recorded NZ$4 billion for fiscal 2007 which
resulted in EBIT of NZ$324 million.
At 31 May 2007, the group recorded consolidated Assets of NZ$12,631 million and Net Assets of NZ$5,016 million.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)