Fonterra result midweek

Fonterra will announce its full-year result on Wednesday.

In July, the dairy co-operative announced its forecast normalised ebit was likely to be about $1 billion, instead of the forecast $1.079 billion stated in the Shareholders' Fund prospectus.

It attributed the lower figure to drought in New Zealand and the reshaping of its Australian business.

Forsyth Barr expected an underlying net profit after tax of $718 million, up 18% (or $109 million) against the previous corresponding period, Forsyth Barr has rated the Fonterra Shareholders Fund, which allows external investors the opportunity to participate in the economic returns of Fonterra, with a sell recommendation.

Broker Andrew Rooney said it was a complex investment mechanism for a complex underlying business.

Earnings growth headwinds were apparent and included margin pressures from higher input cost, a reduction in WACC-based (weighted average cost of capital) processing returns, and a reversal of the product mix benefits experienced in the first half of the financial year.


Add a Comment





Our journalists are your neighbours

We are the South's eyes and ears in crucial council meetings, at court hearings, on the sidelines of sporting events and on the frontline of breaking news.

As our region faces uncharted waters in the wake of a global pandemic, Otago Daily Times continues to bring you local stories that matter.

We employ local journalists and photographers to tell your stories, as other outlets cut local coverage in favour of stories told out of Auckland, Wellington and Christchurch.

You can help us continue to bring you local news you can trust by becoming a supporter.

Become a Supporter