The New Zealand dairy co-operative, Fonterra
(ASX:FSF), says its full year net profit (after tax) surged by 65% to NZ$834 million.
The following figures are in New Zealand Dollars.
Fonterra was able to achieve this, despite its revenue falling 9% to $17.2 billion. The co-operative says this result reflected a stronger business despite ongoing challenges – with global dairy prices at unsustainably low levels.
Fonterra has announced a cash payout of $4.30 for its farmers in the 2016 season. It includes a Farmgate Milk Price of $3.90 kg/MS and a dividend of 40 cents per share. This is below the average break-even point for Fonterra's 10,500 farmers.
In a sign of optimism, Fonterra is forecasting that, in FY17, its dairy farmers will get a total payout between $5.75 and $5.85 before retentions – which includes forecast earnings per share in the 50 - 60 cent range.
