The Half Year Report released in February announced a record first half result of $17.997 million trading profit after tax. In that Report, the Board commented that consumer demand had continued to be robust, but there were a number of potential headwinds that could impact the results in the second half.
There have been covid and supply chain disruptions to trading experienced across the business, but not to a degree that will detract from a strong full year result.
As a consequence, the strong trading conditions experienced in the first half, combined with a solid third quarter to the end of March, sees the business on track to post a trading profit after tax for the 30 June 2022 financial year that will be materially ahead of the $27.924 million record result for the previous year.
The NZ dollar is trading around a seven-week low.
Its $9 per kilogram of milk solids is in line with Fonterra's midpoint.
Recent performance has disappointed but long-term strategy remains clear, say analysts.
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