Fonterra Co-operative Group Limited has announced its 2022 Interim Results which show the co-op has delivered a half year Profit After Tax of $364 million, a Total Group normalised EBIT of $607 million, and a decision to pay an interim dividend of 5 cents alongside a record high forecast Farmgate Milk Price.
Fonterra CEO Miles Hurrell says the co-op’s results for the first half of the financial year show it is performing well, while creating the momentum needed to achieve its 2030 targets.
“The world wants nutritious, sustainably produced dairy and that’s what we do well. We have continued to see strong demand for our products across multiple markets at a time of constrained supply.
“Our earnings have been achieved at a time when our input costs have been significantly higher with the average cost of milk up almost 30% on the same time last year. This shows we’re performing well even with a high Farmgate Milk Price.
“The Board’s decision to pay an interim dividend will be welcome news for our unit holders and farmer owners.
“The milk price is also good news for our farmer owners and the New Zealand economy – a midpoint of NZ$9.60 would see the Co-op inject over $14 billion into our local communities through milk price payments alone.
“Covid-19 continues to be a challenge in our markets and here at home. We’re seeing more of our employees having to isolate and continued disruptions in our supply chain. “However, by caring for our people and good management and planning, our manufacturing plants have continued to operate, and we are getting products to our customers.” Commenting on the co-op’s long-term strategy, Hurrell says it’s been six months since the coop announced it and while it’s early days, the shift from reset to growth is well underway. “This would not be possible without the hard work of our farmer owners and employees, and I want to thank them for their commitment and support.”