High dairy prices will squash Fonterra margins

Thu, 18 Mar 2021

New Zealand’s all-important dairy cooperative yesterday reported a half-year profit of $391 million but is warning record high commodity prices will put pressure on margins in the second half.Fonterra’s group earnings before interest and tax were $657m, down 18% on the same period in 2021, and “normalised” profit was $418m.The normalised result excluded a $50m loss on the disposal and downward revaluation of its Beingmate holding and a $23m impairment reversal for China Farms.Chief executive Miles Hurrell said there were...

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