Fonterra reports 170% profit increase, raises dividend

Fonterra has announced its financial results for the fiscal year ending July 31, 2023.

The company reported earnings of 95 cents per share, up from 36 cents per share the previous year.

Profit after tax increased by 170% to $1.6 billion.

The return on capital also improved from 6.8% to 12.4%.

The Farmgate Milk Price for the 2022/23 season was $8.22 per kgMS.

The company declared a full-year dividend of 50 cents per share, including an interim dividend of 10 cents per share.

Additionally, Fonterra returned a tax-free capital return of 50 cents per share following the divestment of Soprole.

The company's milk collections for the year totaled 1,480 million kgMS.

The forecast for the 2023/24 season Farmgate Milk Price is between $6.00 and $7.50 per kgMS, with a midpoint of $6.75.

The forecast earnings guidance for the same period is between 45 and 60 cents per share.

Fonterra's CEO, Miles Hurrell, acknowledged the challenging conditions faced by farmers but highlighted the company's strong performance and progress on strategic initiatives.