New Zealand's Fonterra Co-operative Group Ltd has posted a marginal jump in annual profit, boosted by strong demand and higher prices for its milk and protein products in Europe and the United States.
Strong dairy demand, coupled with tight supply due to dry weather conditions in New Zealand, resulted in favourable pricing for the Auckland-based firm's products.
Chief executive, Miles Hurrell, said, “These results demonstrate that our decisions relating to product mix, market diversification, quality products and resilient supply chain, mean the Co-op is able to deliver both a strong milk price and robust financial performance in a tough global operating environment."
Outlook And Performance
Earlier this month, Fonterra also raised its fiscal 2023 earnings forecast to between 45 and 60 New Zealand cents per share, citing sustained period of favourable pricing for its protein and cheese portfolios as well as whole milk powder.
Hurrell stated, “The longer-term outlook for dairy remains positive. And in the medium-term, we expect to see an easing in some of the geopolitical events, namely the COVID-19 lockdowns in China and the economic challenges in Sri Lanka. This has been reflected in our earnings guidance and forecast Farmgate Milk Price for the 2022/23 season."
The world's biggest dairy exporter's normalised net profit after tax came in at NZ$591 million (€351.6 million) for the year ended 31 July 2022, compared with NZ$588 million (€349.8 million) a year earlier. It declared a final dividend of 15 NZ cents per share.
The company posted full-year normalised earning per share of 35 NZ cents. It had estimated 25-35 NZ cents apiece.
Fonterra also said it has decided to maintain full ownership of its Australian business after exploring numerous strategic options over the past year, including an initial public offer.
News by Reuters, additional reporting by ESM – your source for the latest fresh produce news. Click subscribe to sign up to ESM: European Supermarket Magazine.
