Fonterra posts record profit in current financial year

For Fonterra's member dairy farmers, there is not much additional news to report compared to the previous announcementA record milk price and corresponding dividend on the shares can be expected.
External parties who have invested money in Fonterra and therefore also own shares can also expect extra dividends, although not as much as the members. For external parties, the dividend will go from 40 to 44 cents (€0,23) per share.

The operating results of the business groups vary, although all three are posting solid positive results. The ingredients division is performing best, with an operating profit of €367 million, which is €121 million more than in the same period last year. This division saw sales increase everywhere. The foodservice division achieved an operating profit of €122 million, which is €59 million less than a year earlier. The foodservice division suffered particularly in China, where sales declined. Nevertheless, Fonterra is continuing to invest in the production of UHT cream in Edendale. The consumer business, which will be divested, achieved an operating profit of €92 million, which is more than €2 million less than in the same period last year. 

Fonterra suppliers in Australia are not sharing in the celebrations, because Fonterra managed to reduce the paid milk price there, which was in line with what other processors 'down under' did. For Fonterra as a whole this resulted in a lower cost item.