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Fonterra posts lower profit on lower milk price
Fonterra has a lower milk price in the books for the past financial year 2023/24 and a lower profit than the previous financial year. However, a slightly higher dividend per share is paid over the past year.
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This is evident from the annual figures that the dairy giant has announced. CEO Miles Hurrell does not specifically address the question of why profits and milk prices are lower than in the previous year, but the results for 2022/23 were extra positive due to a number of one-off gains from the sale of business units. Although not all sales were profitable.
The milk price finally came in at NZ$7,83 per kilo of fat and protein (€33,60 per 100 kilos of milk), which was 39 US cents (€1,68 per 100 kilos) less than the previous year. Earnings per share would also have been lower, had it not been for the addition of an extra dividend of 15 US cents (8,5 euro cents) per share.
All in all, the past financial year was just a little bit tougher for Fonterra, with both lower turnover and lower profit. Turnover fell by around €1 billion to €12,9 billion, net profit went down by €254 million to €637 million. Milk supply also fell slightly. In kilos of fat and protein by 10 million kilos, in litres by 316 million litres. Fonterra's share of the total New Zealand milk supply also fell again.
However, Fonterra is expecting a better year for the new financial year that has already started. The forecast for the milk price is being increased by 50 dollar cents to NZ $ 9,00 per kilo of milk solids. That is the equivalent of € 38,62 per 100 kilos of milk. The expected dividend will be at least 28 euro cents per share, Fonterra believes.