Wednesday, 25 September 2024 09:05

Solid results for co-op, extra 15c/share dividend for farmers, unit holders

Written by  Sudesh Kissun
Fonterra chief executive Miles Hurrell says the co-op is in good shape. Fonterra chief executive Miles Hurrell says the co-op is in good shape.

Fonterra has reported a net profit of $1.1 billion for financial year ending July 31, 2024.

The strong performance has enabled the co-op to return an extra 15c/share dividend to farmer shareholders and unit holders.

The co-op’s final milk price for 2023-24 season is $7.83/kgMS, backed by a total dividend of 55c/share, providing a total cash payout to a fully shared up farmer of $8.38/kgMS for last season.

Chief executive Miles Hurrell says the payout reflects both Fonterra’s continued strong earnings performance and the long-term resilience of the Co-op. 

 “We’ve maintained the positive momentum seen in FY23 and delivered earnings at the top end of our forecast range.

 “Our total dividend of 55c/share is the second largest since Fonterra was formed. It includes a 15c interim dividend and a 25c final dividend driven by strong FY24 earnings. 

 “In addition, our capital management efficiency and ongoing balance sheet strength have enabled us to return an extra 15 cents per share to farmer shareholders and unit holders through a special dividend.”


Read More


Fonterra collected over 1.47 billion kgMS last season. Profit after tax was $1.168b equivalent to 70c/share.

Hurrell says the co-op is in good shape.

“And I'm pleased to have delivered another year of solid returns to farmer shareholders and unit holders. 

 “Looking ahead, we’re well placed to consider the next phase of our strategy to grow long-term value for the Co-op.”

The Co-op reported a return on capital for FY24 of 11.3%, above the target range for FY24.  Earnings (EBIT) from continuing operations were $1,560 million and continue to be well above previous years, albeit down on FY23 which benefitted from elevated price relativities. 

More like this

Fonterra R&D: Innovation needs more than just PhDs

Common sense and good human judgement are still a key requirement for the super highly qualified staff working at one of New Zealand's largest and most important research facilities - Fonterra's R&D Centre at Palmerston North.

Misguided campaign

OPINION: Last week, Greenpeace lit up Fonterra's Auckland headquarters with 'messages from the common people' - that the sector is polluting the environment.

Featured

IFSO urges flood-affected residents to document damage for insurance

Following heavy rain which caused flooding in parts of Nelson-Tasman and sewerage overflows in Marlborough, the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) is urging homeowners and tenants to be cautious when cleaning up and to take the right steps to support claims.

National

Machinery & Products

Farming smarter with technology

The National Fieldays is an annual fixture in the farming calendar: it draws in thousands of farmers, contractors, and industry…

» Latest Print Issues Online

Milking It

110,000 visitors!

OPINION: It's official, Fieldays 2025 clocked 110,000 visitors over the four days.

Sticky situation

OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter