Fonterra Reports Profitable First-Half with Revised Forecasts
Source: dairynews.today
Fonterra's first-half net profit increased by 8%, with notable growth in operating profit and an improved interim dividend.
Fonterra, the multinational dairy co-operative, has reported an 8% increase in its first-half net profits, reaching a total of $729 million. In addition to the profit rise, the company announced a 16% jump in its operating profit to $1.1 billion.
Reflecting this financial success, Fonterra declared a 22 cents per share dividend, an increase from the 15 cents declared in the same period last year. Furthermore, the co-operative has adjusted its forecast for the season's farmgate milk price range.
Initially set between $9.50 and $10.50 per kg of milk solids, the forecast range is now narrowed to $9.70-$10.30, with a mid-point of $10.00 per kg.
According to Fonterra's Chief Executive Miles Hurrell, the company's strategy remains focused on maximizing value while securing the highest possible milk price."
Earnings per share climbed by 10% to 44 cents. Fonterra's chief executive, Miles Hurrell, expressed satisfaction in delivering these results to farmer shareholders and unit holders. "We’re focusing on driving value which includes delivering strong financial performance while achieving the highest sustainable farmgate milk price," Hurrell stated.
Furthermore, Hurrell emphasized the co-op's strategic investments for sustainable growth. Projects have commenced to enhance manufacturing production capacity in the Ingredients and Foodservice sectors. Notable developments include site works at Studholme for high-value protein capacity and at Edendale for a new UHT cream plant.
The company is also investing in securing long-term operations and supply chain resilience, with a new coolstore underway at Whareroa and plans for decarbonisation initiatives at various locations to ensure reliable energy supply and reduce emissions.
Reflecting this financial success, Fonterra declared a 22 cents per share dividend, an increase from the 15 cents declared in the same period last year. Furthermore, the co-operative has adjusted its forecast for the season's farmgate milk price range.
Initially set between $9.50 and $10.50 per kg of milk solids, the forecast range is now narrowed to $9.70-$10.30, with a mid-point of $10.00 per kg.
According to Fonterra's Chief Executive Miles Hurrell, the company's strategy remains focused on maximizing value while securing the highest possible milk price."
Earnings per share climbed by 10% to 44 cents. Fonterra's chief executive, Miles Hurrell, expressed satisfaction in delivering these results to farmer shareholders and unit holders. "We’re focusing on driving value which includes delivering strong financial performance while achieving the highest sustainable farmgate milk price," Hurrell stated.
Furthermore, Hurrell emphasized the co-op's strategic investments for sustainable growth. Projects have commenced to enhance manufacturing production capacity in the Ingredients and Foodservice sectors. Notable developments include site works at Studholme for high-value protein capacity and at Edendale for a new UHT cream plant.
The company is also investing in securing long-term operations and supply chain resilience, with a new coolstore underway at Whareroa and plans for decarbonisation initiatives at various locations to ensure reliable energy supply and reduce emissions.
