Fonterra, Sharesies join to make share trading easier
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
Fonterra has posted a strong first quarter results for this financial year.
The co-op reported an increase in total group normalised earnings before interest and taxes (EBIT) - up 94% to $368 million.
Normalised profit after tax is also up 84% to $214 million and normalised earnings per share are 13 cents, compared with 7 cents at the same point last year.
The co-op also announced new earnings guidance: 50 – 70c/share, up from 45-60c.
However, its forecast farmgate milk price range drops from of $8.50 - $10/kgMS to $8.50 - $9.50/kgMS.
The new midpoint for the forecast milk prices $9/kgMS, a drop of 25c but the co-op’s is holding its advance rate.
Fonterra chief executive Miles Hurrell says the strong performance of its Ingredients channel reflects continued favourable margins in its protein portfolio, particularly for casein and caseinate products used in medical nutrition.
“The sustained strong margins in our protein portfolio give us the confidence to upgrade our earnings guidance, although the wider range reflects the volatility in the market which we expect to continue in the short to medium term.
“If these conditions continue for a further extended period, it could have an additional positive impact on forecast earnings.”
Performance in the co-op’s foodservice channel improved relative to the same period last year, but the high milk price is continuing to put significant pressure on margins in both the foodservice and consumer channels.
Hurrell says significant progress had been made on shipping the additional inventory held at financial year end.
“As planned, inventory volume has returned to normal levels. Lower milk collections at the start of the season have also contributed to the reduced inventory levels.”
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
The Food and Agriculture Organisation of the United Nations (FAO) has welcomed a resolution adopted by the United Nations (UN) General Assembly to declare 2026 International Year of the Woman Farmer.
Waikato herd health veterinarian Katrina Roberts is the 2024 Fonterra Dairy Woman of the Year.
Trade Minister Todd McClay says New Zealand has no intention of backing down in a trade dispute with Canada over dairy products.
Horticulture NZ chief executive Nadine Tunley will step down in August.
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