FSF - Fonterra

[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

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/...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