March 21, 2024
(press release)
–
Key Highlights: *
* EBIT from continuing operations increased by 14% to
* Return on capital for the last 12 months is 13.4%, up from 8.6% last year Original Press Release:
- Reported profit after tax: NZ
- Continuing operations EBIT: NZ
- Earnings per share:
- Return on capital: 13.4%, up from 8.6% - Interim dividend:
- Maintained forecast FY24 continuing operations earnings range of
- Forecast Farmgate Milk Price range narrows: NZ$7.50 -
- Forecast milk collections: 1,465 million kgMS, down 1%
CEO
“I’m pleased to report we’ve continued the positive momentum seen in our earnings performance and delivered an interim dividend of
“The forecast Farmgate Milk Price has also lifted recently, with a current midpoint of
“While supply and demand dynamics remain finely balanced, with continuing global uncertainty, we are now well progressed through the season. This gives us the confidence to narrow our forecast Farmgate Milk Price range to
“We have also maintained our forecast earnings guidance for the year of
Business performance Fonterra’s reported profit after tax of
The Co-op has reported a return on capital for the last 12 months of 13.4%, up from 8.6% on this time last year, and earnings per share of
“Our FY24 earnings have been driven by higher margins and sales volumes in our Foodservice and Consumer channels, which have helped to offset lower returns in the Ingredients channel following historically high price relativities last year,” says
“Sales volumes from continuing operations are up 22kMT or 1.3% to 1,721kMT and gross margins are up from 16.6% to 18.4%. “At the same time, our balance sheet position remains resilient, with our strong underlying performance and low debt position helping to further lower our financing costs this year. “Operating expenses for continuing operations are up
“Looking at our channels and regions, our Consumer and Foodservice earnings are up year on year, due to improved pricing and higher sales volumes. “Ingredients channel earnings are down year on year off the back of historically high price relativities in FY23 and lower margins in
“Global Markets’ reported profit after tax is up
“In February, we announced plans to merge our
“Greater China reported profit after tax is up
“Core Operations’ reported profit is down
Progress on strategy “Across FY24, the Co-op has continued to make progress on its strategy with new initiatives in place to create value for farmers, commercialise our sustainability position and unlock capacity through innovation. “Our new capital structure has been in place for a year and encouragingly, we’re seeing new Co-op farmers citing it as a reason for returning to the Co-op. Some are wanting to take advantage of the flexible shareholding options now available to them and this, coupled with the Co-op’s stability, means we have a strong pipeline of farmers wanting to join the Co-op. “We have also been utilising our scale, optionality, and strong balance sheet to deliver benefits to farmers. This includes getting cash to farmers sooner through our revised Advance Rate guideline. “Earlier this financial year, we returned
“Since announcing our on-farm emissions target, we have been working with customers to commercialise our farmers’ sustainability credentials. This includes introducing to customers our regenerative agriculture position, which recognises our farmers’ pastural farming system. “We’ve continued to decarbonise our
“We’ve also deployed a new technology within our manufacturing base which has unlocked 8,000 MT additional production capacity for our high-value UHT cream,” says
Outlook "Looking out to the remainder of the year, while global inflationary pressures are easing, we are monitoring the potential for volatility as a result of geopolitical instability. “Our partnership with Kotahi and diversification across markets means we’re well prepared for disruption in global supply chains or changes in demand from key importing regions. “We’re pleased with our first half performance for FY24 and look forward to the second half as we continue to deliver for our farmer shareholders and unit holders,” says
Source:
[Category: Financial Results]
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