The Fonterra Co-Operative has today reported a $506 million profit
which comes days after the announcement it is to shed another 750 jobs across its global operation.
Revenue for the year was $18.8 billion, down 15% on the previous year.
The annual report released today by Fonterra says net profit after tax came to $506 million in the year to July 31.
It was up 183% from the previous year’s profit and raised its forecast payout for the current season.
Normalised earnings before interest and taxation were $974 million for the group, up 94%.
The final cash payout to farmers was $4.65 per kilo of milk solids compared with $8.50 a kg in the previous year.
The co-op said the forecast total payout for the current season was $5.00 to $5.10 per kg.
Fonterra also revised up its current milk price forecast for 2015/6 to $4.60 a kg from a previous forecast of $3.85 a kg.
The forecast total available payout for the 2015/6 was forecast at $5.00 to $5.10 per kg, comprising the farmgate milk price and a forecast earnings per share in a 40 to 50c range.
Chairperson John Wilson said in his report, the lift in profitability in the second half of the 2015 financial year was expected to carry through into the current financial year.
“Dairy remains a great industry and business to be in, and I have full confidence this will not change,” says Wilson.
