Fonterra has posted a profit after tax of $674 million for its half year result, up 23% on the same period last year.
The co-operative pointed to strong earnings performance driven by higher margins and sales volumes across its diversified product and category mix.
Continuing operations EBIT was up 14% to $986m for the six months to January 31.
The result saw an interim dividend of 15 cents per share, up from 10 cents per share in the same period last year.
The forecast farmgate milk price has also lifted recently, with a current midpoint of $7.80 per kilogram of milk solids, following volatility earlier in the season.
“While supply and demand dynamics remain finely balanced, with continuing global uncertainty, we are now well progressed through the season. This gives us the confidence to narrow our forecast farmgate milk price range to $7.50 – $8.10 per kgMS,” chief executive Miles Hurrell says.
“Looking out to the remainder of the year, while global inflationary pressures are easing, we are monitoring the potential for volatility as a result of geopolitical instability.
“Our partnership with Kotahi and diversification across markets means we’re well prepared for disruption in global supply chains or changes in demand from key importing regions.
“We’re pleased with our first half performance for FY24 and look forward to the second half as we continue to deliver for our farmer shareholders and unit holders,” says Mr Hurrell.
