Latest / Best of Business / Sam Trethewey: Milford Asset Management Portfolio Manager on KMD Brands posting 11 percent sales drop

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Sam Trethewey: Milford Asset Management Portfolio Manager on KMD Brands posting 11 percent sales drop · Best of Business

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  Speaker 2: Seventeen past six, samras are we Milford Asset Management. Hello, Sam, evening, Heather, Well, jeez,
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  Speaker 2: it was a bit rough from Catman Do. How'd the
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  Speaker 2: market received that?
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  Speaker 3: I like, I think it would be fair to say
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  Speaker 3: investor expectations weren't there high going as the result, and
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  Speaker 3: that turned out to be rightly so that the overall
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  Speaker 3: performance from cat Man Do was soft compared to the
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  Speaker 3: prior year. So the business went from declaring a headline
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  Speaker 3: reported profit of thirty six million last year to a
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  Speaker 3: loss this year of forty eight million, which is really
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  Speaker 3: driven by soft training and a pretty decent impairment against
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  Speaker 3: one of its businesses. So consequently they didn't declare a
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  Speaker 3: dividend given that seft performance. If you look at the
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  Speaker 3: Cammindu group these days, it includes Seff brand and Ripkeurl
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  Speaker 3: as well as an outdoor full wheel brand called Obo,
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  Speaker 3: so not just selling the buffer jackets. Everyone knows, but
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  Speaker 3: I think it really was reflective of subdued economic environment
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  Speaker 3: across since brands, possibly a bit of increased competition from
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  Speaker 3: MACPRAC Macpack within its within the cat Man Do business,
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  Speaker 3: but also was very consistent across each of the regions
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  Speaker 3: it operates the globally, so not surprising, but really confirms
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  Speaker 3: that things are tough out there still for retailers.
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  Speaker 2: On Fonterra, I mean, it's come back a wee bit
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  Speaker 2: from last year's record, but it's still pretty strong, isn't it.
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  Speaker 3: I think it's a very decent contrast to what's going
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  Speaker 3: on at Catmandu that the Fonterra results would have kept
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  Speaker 3: Farmer shareholders and investors very happy. So they came in
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  Speaker 3: and reported earnings and profits at the top end of
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  Speaker 3: their prior guidance seventy cents per year. That was down
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  Speaker 3: from last year's stellar year which was eighty cents per year,
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  Speaker 3: but it still represents a very good year and well
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  Speaker 3: above what they have achieved over the past decades. And
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  Speaker 3: they did declare a special dividends which wasn't anticipated by
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  Speaker 3: shareholders of fifteen cents as well, so that shows that
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  Speaker 3: the balance sheet as in good shape. If you want
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  Speaker 3: it to be critical, you could say that Fontira was
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  Speaker 3: a little bit cautious and its guidance for the airhead
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  Speaker 3: so only really talking in line with long term targets,
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  Speaker 3: and they put a pretty wide range on their milk
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  Speaker 3: price forecast as well, But it's early in the season
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  Speaker 3: season and i'd expect them to adjust that throughout the year.
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  Speaker 2: You know, Miles Harrel has made quite a play of
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  Speaker 2: the fact that there were going to be some really
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  Speaker 2: big changes to Fonterra's strategy under him. Are we starting
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  Speaker 2: to see the benefit of those? Do you think?
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  Speaker 3: Yes? I think that's that's really the key positive out
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  Speaker 3: of the Fonterra result and why I think the share
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  Speaker 3: price has been performing the way it is is that
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  Speaker 3: that strategy, the changes that Miles has put in and
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  Speaker 3: his management team that prioritization and refocus on the core
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  Speaker 3: New Zealand business is now clearly beginning to deliver returns
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  Speaker 3: for the co ops. So if you look back at
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  Speaker 3: the last decade, Fontira had been a real underperform on
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  Speaker 3: the share market due to largely ongoing issues across its
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  Speaker 3: offshore activities, be at their farms in China, South American ventures,
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  Speaker 3: or its global consumer business. So the changes that Miles
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  Speaker 3: has made simplifying the business, focusing in on that core,
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  Speaker 3: has made it a lot less volatile, more stable, far
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  Speaker 3: easier for investors to understand and what the shared place
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  Speaker 3: has performed well since so I think well done to
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  Speaker 3: his management team. They certainly have looked to make some
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  Speaker 3: good decisions and it's flying through to the earnings. The
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  Speaker 3: challenge for them is to keep it going and judging
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  Speaker 3: by what they're saying today, there is further refinement to
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  Speaker 3: be made at strategy announcement next week.
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  Speaker 2: Sam, it's always good to talk to you. I really
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  Speaker 2: appreciate your time. Mate that Sam Trathu. We have Milford
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  Speaker 2: Asset Management.
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