Fonterra reports $1.1bn in full-year profit • Autotalk

Fonterra announced full-year net profit of $1.168 billion, putting it at the higher end of its forecast range.

The co-op’s financial results, often seen as a proxy for the wider New Zealand economy, include profits of 70 cents per share for the 12 months to July 31, 2024. This was driven by higher margins and increased sales volumes in the foodservice and consumer channels.

The dairy giant also announced a final Farmgate Milk Price for 2023/24 of $7.83 per kilogram of milk solids (kgMS), with a total dividend of 55 cents per share. The payout includes a 15 cent interim dividend, a 25 cent final dividend and a special dividend of 15 cents, giving a total cash payout to the fully split farmer of $8.38 per kgMS.

Fonterra Chief Executive Miles Hurrell says the co-operative has maintained its positive momentum from fiscal year 2023 and delivered solid results.

“Our total dividend of 55 cents per share is the second highest since Fonterra was formed,” Hurrell says. “In addition, our capital management efficiencies and continued balance sheet strength have enabled us to return an additional 15 cents per share to farmer and unitholder shareholders through a special dividend.”

Hurrell notes that while global dairy prices have fallen, Fonterra’s overall financial health remains strong.

“Our co-operative is in good health and I am pleased that we have delivered another year of solid returns to our farmer and unitholder shareholders. Looking ahead, we are well placed to consider the next phase of our strategy to increase long-term value for the co-operative,” added Hurrell.

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