Photo: RNZ / Rebekah Parsons-King
Dairy giant Fonterra has reported a solid full-year result and has confirmed it is on track to meet its guidance for the current year.
Key numbers for the year ended July compared to a year ago:
- Net profit $583m vs $599m
- Revenue $23.4b vs $20.6b
- Normalised net profit after tax $591m vs $588m
- Net debt $5.3m vs $4.3m
- Milk payout $9.30 per kilogram of milk solids (kgMS) vs $7.54 per kgMS
- Final dividend 15 cents per share vs 15 cps.
Chief executive Miles Hurrell said 2022 was a good year for the co-op despite increased costs associated with supply chain volatility.
"These results demonstrate that our decisions relating to product mix, market diversification, quality products and resilient supply chain, mean the co-op is able to deliver both a strong milk price and robust financial performance in a tough global operating environment," he said.
The farmgate milk price was the strongest ever, which would return an estimated $13.7 billion to the economy in milk price payments alone this year.
Fonterra chief executive Miles Hurrell (file) Photo:
A review of Fonterra's operations in Australia determined it was in the dairy company's best interest to retain ownership, with the sale of the Soprole business in Chile progressing, Hurrell said.
The decision against the sale of the Australian business would affect the company's planned return of about $1b in capital to owners and unit holders.
"Even though we have decided not to sell a stake in our Australian business, we are still committed to targeting a significant capital return to our shareholders and unitholders," he said.
"The amount of any capital return will ultimately be determined on a number of factors including the successful completion of the divestment programme as well as our ongoing debt and earnings levels."
Fonterra's total divided payout for the year was 20 cents per share for farmer owners and unit holders.
The forecast farmgate milk price range was in a range of $8.50-$10.00 per kgMS, with a midpoint of NZ$9.25, with normalised earnings guidance range of 45-to-60 cents per share.