Fonterra has today announced its 2022/23 opening forecast Farmgate Milk Price of $8.25 - $9.75 per kgMS, with a midpoint of $9.00 per kgMS and maintained its 2021/22 forecast Farmgate Milk Price at $9.10 - $9.50 per kgMS.
The strong opening forecast reflects continued demand for dairy coupled with constrained global supply.
CEO Miles Hurrell says the Co-op’s focus on financial discipline has put it in a good position to manage the impacts of recent global events.
For the nine months ending 30 April 2022, Fonterra’s sales volumes were down and Total Group normalised EBIT was $825 million, down $134 million, reflecting lower sales volumes, pressure on margins from the higher milk price, on-going COVID-19 disruptions, and the rapid decline of the Sri Lankan Rupee.
The Co-op is maintaining its forecast earnings guidance of 25-35 cents per share and has continued to take steps towards its long-term strategy, including the Government consultation process for its new Flexible Shareholding capital structure and ownership review of its Australian business.
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