Fonterra: ‘significant’ capital return coming if consumer business is sold

(Image: NZME)

Mon, 30 Sep 2024

Fonterra Co-operative Group has increased its target average return on capital and its dividend policy as it looks to deepen its focus on its ingredients and food service businesses.It has also flagged a “significant” capital return should it sell its consumer business. The dairy giant is now targeting an average return on capital of between 10% and 12%, up from 9% to 10%, with a new dividend policy of 60% to 80% of earnings.That's up from 40% to 60%.Chair Peter McBride said at all times Fonterra remained committed to maint...

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