Fonterra to fore in full reporting week

The week ahead will be a busy one for corporate news but Fonterra's initial payout forecast for the 2015-16 season, due mid-week, should take centre stage.

The payout was expected to be above $5 but not by much.

Craigs Investment Partners broker Chris Timms said the forecast payout would be based on an assumption of dairy prices rebounding from current levels.

While something in the $5 to $5.25 per kilogram of milksolids would be an improvement on the current season's $4.50, it would be well below the 10-year average of $5.86, excluding dividends.

The 2014-15 season payout started at $7 per kg and was revised down four times.

The headline GlobalDairyTrade index fell 2.2% at last week's auction and whole milk prices fell 0.5%.

''Compared with 2015 peaks from earlier in the year, whole milk powder prices have now fallen 27% and are back at levels not seen since August 2009,'' Mr Timms said.

The reporting week started yesterday with Methven lifting its annual profit by 21% as the new China plant came online.

Also, Evolve posted a smaller full-year loss than forecast in its offer document as it settled a series of acquisitions faster than anticipated.

Although the reporting season was not as busy as either February or August, heavyweights Fisher and Paykel Healthcare and Mainfreight would both report full-year 2015 results this week.

Argosy, Property, Orion Health, Dunedin-based Pacific Edge and Metro Performance Glass would report full-year results.

Gentrack and Tower would report interim results and Genesis Energy was scheduled to report a quarterly update.

Forsyth Barr broker Suzanne Kinnaird expected F&P Healthcare to report 13% growth in reported profit from last year.

Revenue was forecast to be $670.1 million for the full year, reported profit was forecast at $110 million, earnings per share at 19.8c and an increased dividend of 13.2c was expected.

''We believe the earnings profile of F&P Healthcare is improving, driven by accelerating growth in new respiratory therapies, positive market acceptance of its new apnoea masks, marginal expansion from product mix shifts and the ongoing increase of consumable production at its Mexican facility.''

A more favourable currency outlook was also helping earnings, she said.

Mainfreight was expected to report profit growth below trend in its full-year result tomorrow.

Forsyth Barr forecast sales revenue of $2 billion, operating earnings of nearly $160 million and reported profit of $82.4 million.

Earnings per share of 83c were expected along with a final dividend of 20c.

Ms Kinnaird said Mainfreight was methodically building a global freight and logistics business and she liked its key attributes.

It had a high marginal return on equity, through leveraging organic growth from its existing network.

Earnings growth was outpacing the market and its peers and the executive team was proactive and had proven to be highly responsive to changes in market conditions.

Mainfreight had substantial global growth prospects, she said.

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