(Yicai Global) March 30 -- Despite the impact of pandemic control measures on the supply chain, Fonterra Co-operative Group’s catering services reached a new high in China in the fiscal first half, The Paper reported.

New Zealand-based Fonterra expects its food service business to continue to expand at a double-digit rate throughout the fiscal year, the report said today.

Fonterra’s adjusted after-tax profit jumped 43 percent to NZD418 million (USD292.6 million) in the six months ended Jan. 31, its semi-annual report showed recently. Of that, China accounted for NZD339 million, a surge of 48 percent.

The results fully reflect the strength of the firm’s catering business and further improvement in the performance of its consumer brand business as well as China’s strong economic recovery, according to Chief Executive Miles Hurrell.

China’s economy is doing well and the coronavirus is well under control, Fonterra’s China CEO Teh-han Chow said yesterday. That has restored a normal business environment for Fonterra.

In addition, consumer confidence is picking up and consumption capacity is also strengthening amid increased focus on dairy products in China, Chow noted, adding that Fonterra has been continuously improving its national coverage, with its food services entering 372 cities.

Earnings before interest and tax of Fonterra’s catering services in China surged 64 percent, with growing demand for cream and cheese products in the baking, catering, and beverage channels. Fonterra added 22 cities to its food services business in the fiscal first half.

The 22 new cities are all third- and fourth-tier markets, said Justin Dai, vice president of catering services for Fonterra China. He expects the business to continue growing at a double-digit pace.

Editor: Peter Thomas