FSF - Fonterra

[bull....]

looks like they are still failing to address there capital restraints fully which would enable them to compete in the future fully.

peak cow not fully addressed only leads to one outcome long term

[maclir]

14 years on and still no addressing the implications of an ownership group who won't invest in their cash cow...

[Dassets]

I don't get this. They seem to be concerned about continued conversion/lack of market for suppliers trying to flog supplier shares. The fund is at max and they close it so more do not convert. Why are there pressures, because "peak" cow and the long run decline for the industry effectively through legislated controls by central and local bodies; ability of farmers to supply other processors(although this is only 20% of market).

Their answer, let's further limit the buyer pool for these types of securities AND reduce the number suppliers need to hold to supply. Maybe the Board and management need to pose this question to Fonterra's marketing department in this MEMO: If demand for a product is reduced and the supply is increased what are the possible outcomes.

My answer is they will struggle for a number of years in some alternate universe until the wall separating the 2 universes fall down due to the weight of the sellers leaning on it and the two universes collide with a few confused buyers being swamped by rabid sellers wearing redbands offering free tickets to the rugby(supplied by Silverlake) with every bulk lots of shares.

[bull....]

United Nations just released a report saying methane emissions should be the focus on climate change. highlighted agriculture as significant sector to target.

as i mentioned yesterday peak cow is here. climate change ( 40% of nz emissions are from ag i believe ) , eating habits moving away from meat and dairy , people are drinking less cows milk esp in younger generations etc all lead to the same conclusion this is a sunset industry in its current form.

[percy]

United Nations just released a report saying methane emissions should be the focus on climate change. highlighted agriculture as significant sector to target.

as i mentioned yesterday peak cow is here. climate change ( 40% of nz emissions are from ag i believe ) , eating habits moving away from meat and dairy , people are drinking less cows milk esp in younger generations etc all lead to the same conclusion this is a sunset industry in its current form.

Red meat exports are doing just fine.
https://sendy.tarawera.co.nz/l/J6oLVth2f3f6IXNYvUBQEg/elkNKoJVKO9l56i3anZ892vw/itr2dtmPh8PhiJ6bgTP2aA

[Habits]

United Nations just released a report saying methane emissions should be the focus on climate change. highlighted agriculture as significant sector to target.

as i mentioned yesterday peak cow is here. climate change ( 40% of nz emissions are from ag i believe ) , eating habits moving away from meat and dairy , people are drinking less cows milk esp in younger generations etc all lead to the same conclusion this is a sunset industry in its current form.

Hahaha, sunset industry yeah right. The UN would be better working out how to stem human population meteoric increase. If they wish to lower cow methane emissions there are ways to do this without killing the cow. And as people need animal proteins in their diets to be healthy the nz ag sector is not shrinking, outputs may shrink or stabilise but not returns eg WMP price keeps rising. I know that the Chinese are going more and more nuts for dairy products fof example.

These Fonterra changes will not happen immediately, I can see this taking a while. Buying back the units under the guise of farmer control may very well be a smoke screen for wresting back ownership at a time when it is relatively cheap to do so. From the reports I have seen fonterra the company had some innovative and profitable enhancements and products on the way and in the market place.

[whatsup]

IMHO Fonterra is its own worst enemy and survives in spite of its self !

IMO A very lazy company !

IMO It is in the trouble it is because of its self , ie it should not be paying more than 60-70% of the milk solid earnings that will deal with its capital issue and solve all of its other current issues but dont hold your breath so farmers are their one worst enemy, now the circle is complete.

[kiora]

Its called lets kick the ag sector in the guts again BULL.
What about transport ?
"
New Zealand greenhouse gas emissions have been relatively unchanged since 2005. In 2018 New Zealand’s gross greenhouse gas (GHG) emissions were 78.9 million tonnes of CO2-e, 24.0 percent higher than 1990 and 1.0 percent lower than 2017.

In 2018:

Gross emissions were mainly made up of carbon dioxide (44.5 percent), methane (43.5 percent), and nitrous oxide (9.6 percent).

Carbon dioxide emissions were mainly produced by transport (47.0 percent), manufacturing industries and construction (17.9 percent), and public electricity and heat production (9.4 percent).

Emissions from transport were up 2.3 percent from 2017 and up 89.7 percent from 1990. Transport emissions were mainly made up by road vehicle emissions (90.7 percent) and domestic aviation (6.7 percent).
Road transportation emissions in 2018 were up 2.0 percent from 2017 and up 101.6 percent from 1990. They made up 42.6 percent of all carbon dioxide emissions in 2018.
Domestic aviation emissions in 2018 were up 12.0 percent from 2017 and up 17.7 percent from 1990. They made up 3.2 percent of all carbon dioxide emissions in 2018.
Emissions from manufacturing industries and construction were down 9.9 percent from 2017 and up 34.2 percent from 1990. They made up 17.9 percent of all carbon dioxide emissions in 2018.
Emissions from public electricity and heat production were down 8.4 percent from 2017, down 63.3 percent from 2005, and down 5.5 percent from 1990. This reflects our high proportion of electricity generation from renewable sources. In 2018, the share of electricity generated from renewable energy sources in New Zealand was 84 percent (Ministry of Business, Innovation & Employment, 2019)."

https://www.stats.govt.nz/indicators/new-zealands-greenhouse-gas-emissions

"In 2018:

Gross emissions were mainly made up of carbon dioxide (44.5 percent), methane (43.5 percent), and nitrous oxide (9.6 percent).

Carbon dioxide emissions were mainly produced by transport (47.0 percent), manufacturing industries and construction (17.9 percent), and public electricity and heat production (9.4 percent).

Emissions from transport were up 2.3 percent from 2017 and up 89.7 percent from 1990. Transport emissions were mainly made up by road vehicle emissions (90.7 percent) and domestic aviation (6.7 percent).
Road transportation emissions in 2018 were up 2.0 percent from 2017 and up 101.6 percent from 1990. They made up 42.6 percent of all carbon dioxide emissions in 2018.
Domestic aviation emissions in 2018 were up 12.0 percent from 2017 and up 17.7 percent from 1990. They made up 3.2 percent of all carbon dioxide emissions in 2018."

[Sideshow Bob]

Fonterra’s capital structure proposals are the biggest since its formation in 2001. The devil is in the detail, says Keith Woodford | interest.co.nz (https://www.interest.co.nz/rural-news/110286/fonterra%E2%80%99s-capital-structure-proposals-are-biggest-its-formation-2001-devil-detail)

Prof Keith's take on it.

[RTM]

Fonterra unit fund manager reports to market on capital structure proposal
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12453679

Bit more work to do by the sounds of things.

[Beagle]

Fonterra unit fund manager reports to market on capital structure proposal
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12453679

Bit more work to do by the sounds of things.

Thanks for your input on this mate, much appreciated.
Could be a pretty decent corporate bun fight shaping up here. I would think that NTA of $4.54 would at least in theory form a floor for any attempt to but out non milk supplier shareholders.
Of course that's the historical NTA from last year so could be higher now after a pretty good year for Fonterror (deliberately mis-spelt)
I bought "a ticket" to enjoy watching this legal fiasco play itself out. Good that they have cleaned up their balance sheet and disposed of their Chinese owned operations.

Looking into plant based milk https://www.nzherald.co.nz/business/dairy-giant-fonterra-looks-to-offset-bovine-decline-with-plant-based-milks/7B6DTXTCMBRGYPPT7WGBEN7YYY/

[Habits]

Thanks for your input on this mate, much appreciated.
Could be a pretty decent corporate bun fight shaping up here. I would think that NTA of $4.54 would at least in theory form a floor for any attempt to but out non milk supplier shareholders.
Of course that's the historical NTA from last year so could be higher now after a pretty good year for Fonterror (deliberately mis-spelt)
I bought "a ticket" to enjoy watching this legal fiasco play itself out. Good that they have cleaned up their balance sheet and disposed of their Chinese owned operations.

Buying a ticket, or more than one is a smart move, i bought 7000 FSF tickets last week at 370, now 395, although I have reasons for owning them, other than catching the bounce-back

[winner69]

Good move getting a ticket to the bun fight, esp when one party seems motivated to get an outcome.u

[RTM]

Fonterra makes inroads into its GHG emissions from coal reduction goal
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12472194

I hope NZ Inc has enough wood pallets to sustain this.
I guess they done the sums.

[mcdongle]

Fonterra makes inroads into its GHG emissions from coal reduction goal
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12472194

I hope NZ Inc has enough wood pallets to sustain this.
I guess they done the sums.

If not we can always cut down a forest

[RTM]

Duplicate post

[Marilyn Munroe]

China has announced it will apply to join the CPTTP trade agreement.

Has Fonterra learnt its lesson or will it be a supporter of the application so it can again throw its balance sheet into the Chinese ring to be knocked to the canvas?

Boop boop de do
Marilyn

[Habits]

China has announced it will apply to join the CPTTP trade agreement.

Has Fonterra learnt its lesson or will it be a supporter of the application so it can again throw its balance sheet into the Chinese ring to be knocked to the canvas?

Boop boop de do
Marilyn

If there is a next time they will be smarter but a lot of kiwis are once bitten twice shy, After the 1987 sharemarket collapse small investors just could not bring themselves to return

[Balance]

China has announced it will apply to join the CPTTP trade agreement.

Has Fonterra learnt its lesson or will it be a supporter of the application so it can again throw its balance sheet into the Chinese ring to be knocked to the canvas?

Boop boop de do
Marilyn

Problem is with Fonterra’s management - not China or whatever places FSF invests in.

It’s not only the investments in China which have gone badly, Fonterra’s investments in South America have also been disasters.

I personally know a Fonterra engineer who was seconded to Bueno Aires and he could not wait to get transferred back to NZ fast enough. Due to the very poor due diligence done by FSF before committing hundreds of millions of dollars in investments, the operations there were disasters from day 1.

https://www.stuff.co.nz/business/farming/114960536/fonterras-financial-turmoil-a-history-of-costly-mistakes-comes-back-to-haunt-diary-giant

[mike2020]

What was the timeframe on that Balance? I have not been a supplier or a shareholder for over a year now but the last few meetings I went to under the new board showed a much different culture forming with a long term plan that most farmers would have wanted from day one. Not an exciting vision of world domination just a stick to what we are good at plan.

[Balance]

What was the timeframe on that Balance? I have not been a supplier or a shareholder for over a year now but the last few meetings I went to under the new board showed a much different culture forming with a long term plan that most farmers would have wanted from day one. Not an exciting vision of world domination just a stick to what we are good at plan.

Precisely the point I am making - previous FSF management were woeful and had no idea how to make sound strategic investments. Nothing to do with China or South America being bad countries to invest in.

So one hopes that lessons have been learnt & the new management are more capable.

All the money raised via FSF IPO - gone in a puff of smoke in bad investments. Sobering, isn’t it?

[peat]

and the recommendation is????

more of the same.

[RTM]

https://www.nzx.com/announcements/379626

A bit to chew through here. Dividend helpful.
Disc: Holder

[Balance]

and the recommendation is????

more of the same.

Back to basics and the drawing board for Fonterra - strengthen farmer shareholders' grip on the company and continue divestment program (Chile next to be exited).

How Fonterra must be wishing it never raised the $500m via FSF - all invested overseas and all down the drain plus another $900m, funded by debt!

Fonterra should do okay from here on in but FSF unit holders? Better place to put one's money, I suspect.

[kiora]

Concur
Chinese farms anyone @#%*
Sad

[mike2020]

A huge number of farmers did well out of China farms, selling young stock at 2 or 3 times market value to export, a few stopped milking and made themselves quarantine farms. A lot of people enjoyed some benefits, stock agents with an export order were very popular. I know of people who got on board the ship for a free trip to China. I bet someone could make a much better list than me. As a shareholder at the time seeing the red ink around China farms I was less than excited about it, dismayed and bewildered would have covered it better.

[winner69]

Jenny Ruth opines that Fonterra is ‘screwing FSF shareholders’

[Habits]

Down 19 cents. Are non farmers concerned that dairy farmers will be converting their shares. Fonterra just needs to buy out the units as they have been told to do by the FSF chairman. Or could issue a big dividend to boost the yield and therefore the value

[Habits]

From the update "our path to 2030"

"...return around $1 billion of capital by FY24.... assuming achieve targets and maintain positive outlook, further capital returns to occur from FY25.
" by 2030 we are targeting a dividend of around 40-45 cents per share" up from 20 cents FY21

There is approx 2.8 billion shares on issue

[mike2020]

From the update "our path to 2030"

"...return around $1 billion of capital by FY24.... assuming achieve targets and maintain positive outlook, further capital returns to occur from FY25.
" by 2030 we are targeting a dividend of around 40-45 cents per share" up from 20 cents FY21

There is approx 2.8 billion shares on issue

I remember supplier meetings where they touted KPMGs "taming the tiger" report that expected EPS of $2 by now. That was around 7 years ago from memory.

[Habits]

I remember supplier meetings where they touted KPMGs "taming the tiger" report that expected EPS of $2 by now. That was around 7 years ago from memory.

Would have been better to feed theo to the tiger than listen to him justifying his salary with overhyped forecasts. That said it is a big ask to double the dividend and they have used what I think is a low 6.50 to 7.50 average farm gate price. Current season is high 8 or more. I see the input price staying up for at least 22/23 season.

[Sideshow Bob]

Great news for farmers, and the wider economy.

Fonterra lifts forecast Farmgate Milk Price range - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/386337)

Fonterra lifts forecast Farmgate Milk Price range
Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range to NZD $8.90 - $9.50 per kgMS, up from NZD $8.40 - $9.00 per kgMS.
This increases the midpoint of the range, which farmers are paid off, by 50 cents to NZD $9.20 per kgMS.
Fonterra CEO Miles Hurrell says the lift in the 2021/22 forecast Farmgate Milk Price range is good news for both farmers and New Zealand communities. The new midpoint of $9.20 per kgMS would contribute $13.8 billion to the New Zealand economy this season.

[macduffy]

But not great news for FSF holders!

Disc: Not holding.

[winner69]

But not great news for FSF holders!

Disc: Not holding.


...and probably Synlait shareholders

..... and consumers will suffer no doubt

[Newman]

The Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Bill has been introduced into the House of Representatives today. It is now publicly available on the government's legislation website. A press release from Minister O’Connor is available on the Beehive website (https://www.beehive.govt.nz/release/government-introduces-dira-amendment-bill).

[Louloubell]

Fonterra is obviously not a sexy topic to discuss on this forum

[Sideshow Bob]

Fonterra is obviously not a sexy topic to discuss on this forum

Why would you discuss NZ's biggest company? With the only ownership possibility for the public being their units, which have been an absolute dog.

However a strong, well performing Fonterra is important to NZ. From today's announcement:

Fonterra profit up 50% in FY23 Interim Results
• Profit After Tax: NZ$546 million, up 50%  
• Earnings per share: 33 cents per share  
• Interim Dividend: 10 cents per share  
• Return on Capital: 8.6%, up from 6.1% 
• Forecast milk collections: 1,465 million kgMS, down 1%   
• Forecast Farmgate Milk Price range: NZ$8.20 - $8.80 per kgMS  
• Proposed capital return: approximately 50 cents per share and unit 
• Upgraded full year forecast normalised earnings from 50-70 cents per share to 55-75 cents per share 

[Louloubell]

Yep, and the capital return is tax-free.
And the said that the FY dividend will be "strong"

[mshierlaw]

"Proposed capital return: approximately 50 cents per share and unit"

What is this going to look like? Dividends or something else.

[Habits]

"Proposed capital return: approximately 50 cents per share and unit"

What is this going to look like? Dividends or something else.




More clarity when they report in two days? Isn't it a cash payment extra to dividend and coming sept or Oct

[Louloubell]

Yep, you are correct. The sale of the Chili business will result in a separate return of approximately 50 cents per share tax free. This will be in addition to the dividend.

[RTM]

https://www.nzx.com/announcements/412010

Capital return, 50c, bought forward a bit. Outlook positive.

[Habits]

https://www.nzx.com/announcements/412010

Capital return, 50c, bought forward a bit. Outlook positive.

Before the capital restructuring these were about 5 bucks something for both share classes. Lower earnings too

[mshierlaw]

Before the capital restructuring these were about 5 bucks something for both share classes. Lower earnings too
Returns to shareholders have been reported for some 6 months now so no surprises here. I think these are very attractive & looking forward to a HUGE final dividend and the capital return. I completed my purchases March on the swing low, my only regret is not having the guts to buy at the low in May 22.

They want these shares back but did not vote to close this fund, buy back will take forever ..... so what is next?
.

[RTM]

Returns to shareholders have been reported for some 6 months now so no surprises here. I think these are very attractive & looking forward to a HUGE final dividend and the capital return. I completed my purchases March on the swing low, my only regret is not having the guts to buy at the low in May 22.

They want these shares back but did not vote to close this fund, buy back will take forever ..... so what is next?
.

A couple of links some may be interested in.
https://www.nzx.com/announcements/415316
Above is for another buyback….50million.
And all go for the capital return.
https://www.nzx.com/announcements/415294

My son tells me it’s a sunset industry, not sure when it will set tho.

[mshierlaw]

Yep, you are correct. The sale of the Chili business will result in a separate return of approximately 50 cents per share tax free. This will be in addition to the dividend.

I see return of capital has been declared as dividends. I eagerly await seeing no tax deducted from these returns. What to do if tax is deducted?

[mshierlaw]

Divies are in the bank with no tax deducted.

Share price has been punished as expected.

Another dividend not too far away, doesn't look like it will be as big as previously forecast.

[ronaldson]

Divies are in the bank with no tax deducted.

Share price has been punished as expected.

Another dividend not too far away, doesn't look like it will be as big as previously forecast.

I don't think it is at all correct to describe the 50cps payment as a dividend. Rather it is a return of capital, accompanied by the cancellation of one share in every six held, and is non-taxable in the hands of the recipient.

An actual dividend will be declared and paid in the reasonably near future (on the lesser number of shares after the cancellation is recorded) which will be taxable in the hands of those receiving it, but may be accompanied by imputation credits/withholding tax which can be offset.

[RTM]

I don't think it is at all correct to describe the 50cps payment as a dividend. Rather it is a return of capital, accompanied by the cancellation of one share in every six held, and is non-taxable in the hands of the recipient.

An actual dividend will be declared and paid in the reasonably near future (on the lesser number of shares after the cancellation is recorded) which will be taxable in the hands of those receiving it, but may be accompanied by imputation credits/withholding tax which can be offset.

I agree it’s not a dividend and will adjust the cost of my shares accordingly. With Fonterra the share count has actually stayed the same. Magic !

[Habits]

I don't think it is at all correct to describe the 50cps payment as a dividend. Rather it is a return of capital, accompanied by the cancellation of one share in every six held, and is non-taxable in the hands of the recipient.

An actual dividend will be declared and paid in the reasonably near future (on the lesser number of shares after the cancellation is recorded) which will be taxable in the hands of those receiving it, but may be accompanied by imputation credits/withholding tax which can be offset.

For someone holding units, ticker code FSF, did they also have 1/6 cancelled? The yahoo finance app shows the 50c return differently between the units FSF and the shares FCG. The units does not adjust the share price history and the shares have adjusted. Quite strange

[winner69]

For someone holding units, ticker code FSF, did they also have 1/6 cancelled? The yahoo finance app shows the 50c return differently between the units FSF and the shares FCG. The units does not adjust the share price history and the shares have adjusted. Quite strange

The FSF announcement said -

268,208,181 shares were repurchased and cancelled. At the same time, one share held by each shareholder which was not repurchased by Fonterra was subdivided into such number of shares as were repurchased from that shareholder, plus one (1).
The total number of shares on issue following the share repurchase and subdivision is 1,609,244,669 (the same as before share repurchase and subdivision).

[mshierlaw]

For someone holding units, ticker code FSF, did they also have 1/6 cancelled? The yahoo finance app shows the 50c return differently between the units FSF and the shares FCG. The units does not adjust the share price history and the shares have adjusted. Quite strange

Totally confusing, double checked my holding & unchanged. The 1/6 applies to FCG only not FSF. FCG holders did get $3 /share which was supposedly a premium.

I remember a similar thing happened to me recently with PGW, I was sure I ended up with nothing extra. Wonder how FCG holders feel?

Agree this is not a dividend but thats how it's being reported by all platforms. I hope my tax is not effected by this.

[Habits]

No wonder the FCGs were whacked and a wide gap has opened. I will follow up

[Habits]

Totally confusing, double checked my holding & unchanged. The 1/6 applies to FCG only not FSF. FCG holders did get $3 /share which was supposedly a premium.

I remember a similar thing happened to me recently with PGW, I was sure I ended up with nothing extra. Wonder how FCG holders feel?

Agree this is not a dividend but thats how it's being reported by all platforms. I hope my tax is not effected by this.


No shareholdings have been reduced, according to my family member who spoke to fonterra rep.

How does that works.

[RTM]

No shareholdings have been reduced, according to my family member who spoke to fonterra rep.

How does that works.

It’s magic.
Explained in the Fonterra documents quite clearly. Winner from memory posted it somewhere below.

[Sideshow Bob]

https://www.nzx.com/announcements/418592

Fonterra announces FY23 Annual Results
• Full year reported earnings of 95 cents per share, up from 36 cents per share
• Reported profit after tax of $1.6 billion, up 170%
• Return on Capital of 12.4%, up from 6.8%
• Final 2022/23 season Farmgate Milk Price of $8.22 per kgMS
• Full year dividend of 50 cents per share, including interim dividend of 10 cents per share
• Additional tax free 50 cents per share capital return following divestment of Soprole
• Full year milk collections of 1,480 million kgMS
• Forecast 2023/34 season Farmgate Milk Price range of $6.00 - $7.50 per kgMS, with a midpoint of $6.75
• Forecast 2023/24 earnings guidance range of 45-60 cents per share

[mike2020]

Gingos. A dollar returned in 12 months and at 50 cent div a 10 percent return equals what again? I thought this dog had had its day.

[mshierlaw]

https://www.nzx.com/announcements/418592


• Forecast 2023/24 earnings guidance range of 45-60 cents per share

From above guidance next year will be a return to normal. Dividend anything between 18 - 36 cents. Mind you that was what they predicted last year & look what happened :D

[mike2020]

Yip. Lower milk price and a few less shares and staff. Who knows.

[winner69]

When you join -


Fonterra appoints Chief Financial Officer

Today Fonterra Co-operative Group announced the appointment of Neil Beaumont to the role of Chief Financial Officer, effective early February 2023.

Neil is an accomplished Group CFO, experienced in operating at the most senior levels of global and in complex business environments. Most recently he was Senior Managing Director, Chief Financial and Risk Officer at Canada Pension Plan Investment Board (CPPIB), with responsibility for leading the operations, finance and risk functions for the CAD $500 bn investment fund.

Speaking about the appointment, Fonterra CEO Miles Hurrell says, “We’re delighted to welcome Neil to the team. He’s an experienced global finance leader whose expertise in strategic implementation will be a real asset to our management team.”

Neil has held senior roles at BHP Billiton in Chile and Australia and at KPMG. He is a Chartered Accountant with the Canadian Institute of Chartered Accountants and holds a Bachelor of Commerce from the University of Saskatchewan.

When you leave a few months later

Fonterra has today announced that Chief Financial Officer Neil Beaumont is leaving the Co-operative.

Neil joined the Co-operative in February 2023 and his last day will be the 3rd of November.

Must be heading back home

[winner69]

NBR says ‘ It is unclear whether Beaumont resigned or was fired.’

[Traderx]

Can anyone explain to me in simple terms why there is such a large difference between the price of Farmers shares (FCG) and the units (FSF)?

The Farmers shares apprear on the surface to be ultra cheap on relative basis? Are farmers under such cashflow pressure that they cannot close out this arbitrage? Surely a Farmer could arrange a short position in FSF and go long FCG?

Farmers appear to be now able to hold up to 4X their milk equivlaent shares - i.e they can take a substantial outright position on the shares

[Sophie]

My understanding is that the shares can't be exchanged into units as easily as they used to. The gap between prices started around the time the proposed cap on the Fund was announced (April 2021-ish?) - comparing the two over the last few years makes for a neat graph showing the difference between when there is an arbitrage opportunity and when there isn't.

[Sideshow Bob]

Good news for NZ Inc.....

https://www.nzx.com/announcements/425975

FY24 forecast Farmgate Milk Price lifts
Fonterra Co-operative Group Limited has today increased its 2023/24 season forecast Farmgate Milk Price, with the midpoint lifting by 30 cents to $7.80 per kgMS, up from $7.50 per kgMS.
The forecast range for the season increases to $7.30-$8.30 per kgMS, up from $7.00 - $8.00 per kgMS.

[Sideshow Bob]

https://www.nzx.com/announcements/428329

Strong profit and dividend for FY24 interim results
• Reported profit after tax: NZ $674 million, up 23%
• Continuing operations EBIT: NZ $986 million, up 14%
• Earnings per share: 40 cents per share
• Return on capital: 13.4%, up from 8.6%
• Interim dividend: 15 cents per share, up from 10 cents per share
• Maintained forecast FY24 continuing operations earnings range of 50-65 cents per share
• Forecast Farmgate Milk Price range narrows: NZ$7.50 - $8.10 per kgMS
• Forecast milk collections: 1,465 million kgMS, down 1%

[mshierlaw]

https://www.nzx.com/announcements/428329

Strong profit and dividend for FY24 interim results
• Reported profit after tax: NZ $674 million, up 23%
• Continuing operations EBIT: NZ $986 million, up 14%
• Earnings per share: 40 cents per share
• Return on capital: 13.4%, up from 8.6%
• Interim dividend: 15 cents per share, up from 10 cents per share
• Maintained forecast FY24 continuing operations earnings range of 50-65 cents per share
• Forecast Farmgate Milk Price range narrows: NZ$7.50 - $8.10 per kgMS
• Forecast milk collections: 1,465 million kgMS, down 1%

Great result, good to see good interim dividend with promise of another bumper final dividend.

Divided policy is 40 to 60% of NPAT paid in dividends with no more than 40% paid in interim.

This leads to final dividend of more than 22.5 cents. That's a gross yield of 10.47% on todays share price.

[nztx]

No tax credit attachments tossed out from under the covers with spitouts from this curious beastie - are there ?

Maybe 'after the tax add-ons & takeaways' assessment of what coin leftover lands in the pocket might be a better comparison basis ? :)

[whatsup]

Can someone please post the news article about bird flu effecting the dairy industry in the U S ?

[Sideshow Bob]

Can someone please post the news article about bird flu effecting the dairy industry in the U S ?

Like this one?? https://hub.jhu.edu/2024/04/15/qa-avian-flu-in-cows/

[whatsup]

Like this one?? https://hub.jhu.edu/2024/04/15/qa-avian-flu-in-cows/

Bob, thank you, interesting reading.