FY21 normalised earnings (EBIT) rose 8% and were 3% ahead of the UBS estimate, driven by stronger Asia Pacific and Europe, Middle East & Africa and North Asia (AMENA) consumer contributions and lower overheads. This was partly offset by greater Ingredients margin pressure.
The broker feels EPS looks to have stabilised, the balance sheet is repaired and management has set new aspirations for significantly
better financial outcomes over the next three years. The target falls to NZ$4.30 from NZ$5.
The Neutral rating is retained, especially as the key upside potential from the proposed AMENA disposal is currently more than 12 months away.
Sector: Food, Beverage & Tobacco.
Current Price is $3.85. Target price not assessed.
