Fonterra reported a noteworthy after-tax profit of $674 million
Source: The DairyNews
Fonterra Co-operative Group Ltd has unveiled its interim results for fiscal year 2024, showcasing a continuation of strong earnings performance. CEO Miles Hurrell attributes this success to increased margins and sales volumes across Fonterra's diversified product and category mix.
Hurrell expressed satisfaction in maintaining positive momentum in earnings performance and announced an interim dividend of 15 cents per share, up from 10 cents in the preceding year. Moreover, the forecast Farmgate Milk Price has recently risen to a midpoint of $7.80 per kgMS, prompting the Co-op to narrow its forecast range to $7.50 - $8.10 per kgMS.
In terms of financials, Fonterra reported a noteworthy after-tax profit of $674 million, marking a $128 million increase from the previous year. EBIT from continuing operations surged by 14% to reach $986 million.
Return on capital also witnessed a significant uptick to 13.4%, up from 8.6% year-on-year, while earnings per share climbed to 40 cents from 33 cents.
The Co-op's earnings growth is attributed to higher margins and sales volumes in the Foodservice and Consumer channels, offsetting lower returns in the Ingredients channel. Despite increased operating expenses, Fonterra maintains a resilient balance sheet, with a focus on reducing costs across the business.
Fonterra's strategic initiatives have yielded positive results, with progress made in creating value for farmers, enhancing sustainability efforts, and unlocking capacity through innovation. The Co-op's partnership with Kotahi and diversification across markets position it well to navigate potential disruptions in global supply chains and changes in demand.
"While global inflationary pressures are easing, Fonterra remains vigilant amid geopolitical instability. The Co-op is optimistic about its performance in the second half of FY24 and remains committed to delivering value for its farmer shareholders and unit holders", - company reported.
In terms of financials, Fonterra reported a noteworthy after-tax profit of $674 million, marking a $128 million increase from the previous year. EBIT from continuing operations surged by 14% to reach $986 million.
Return on capital also witnessed a significant uptick to 13.4%, up from 8.6% year-on-year, while earnings per share climbed to 40 cents from 33 cents.
The Co-op's earnings growth is attributed to higher margins and sales volumes in the Foodservice and Consumer channels, offsetting lower returns in the Ingredients channel. Despite increased operating expenses, Fonterra maintains a resilient balance sheet, with a focus on reducing costs across the business.
Fonterra's strategic initiatives have yielded positive results, with progress made in creating value for farmers, enhancing sustainability efforts, and unlocking capacity through innovation. The Co-op's partnership with Kotahi and diversification across markets position it well to navigate potential disruptions in global supply chains and changes in demand.
"While global inflationary pressures are easing, Fonterra remains vigilant amid geopolitical instability. The Co-op is optimistic about its performance in the second half of FY24 and remains committed to delivering value for its farmer shareholders and unit holders", - company reported.
