Fonterra expects higher profit and dividend payout

Fonterra sees results continue to rise compared to last year. Gross profit increases and the expected dividend per share also goes up. The expected milk price remains stable, the possible deviation becomes smaller. Fonterra announced this when presenting the figures for the third quarter of the current financial year. Operating profit has increased by NZ $103 million to NZ $1.8 billion (approximately €0.9 billion), the dividend per share has risen from 53 to 57 cents per share. The expected milk price for the current season remains at NZ $9.70 per kilo of fat and protein (€54.63 per 100 kilos), but the margin for deviation has narrowed from NZ $9.40 to 10.00 to NZ $9.60 to NZ $9.80 per kilo. Milk supply up to and including the third quarter was 4% higher than last year up to and including the third quarter and stands at 1,489 million kilos of fat and protein. Fonterra is also working to expand the organic milk supply, especially on the South Island. A substantially higher price is being offered for this milk. This season a record milk price of NZ $14.00 per kilo of combined fat and protein is expected. Converted, this would amount to €78.84 per 100 kilos, but then based on the higher New Zealand fat and protein contents. At three Fonterra plants, investments are currently still underway to increase the capacity of certain products. Fonterra is also making extra efforts to meet the strong demand for high-protein products. In the third quarter, receipts also came in from the Mainland Group, which has now been sold to Lactalis. More clarity on this will be provided in the report for the full financial year.