📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

NZ's Fonterra profits rise 123 percent on lower costs

Published 23/03/2016, 07:02 am
NZ's Fonterra profits rise 123 percent on lower costs

WELLINGTON, March 23 (Reuters) - New Zealand dairy company Fonterra FCG.NZ reported a 123 percent jump in half-year profit on Wednesday as the drop in global milk prices reduced its costs.

The company, which is the world largest dairy exporter, said net profit after tax rose to NZ$409 million ($276.08 million).

Fonterra maintained its forecast farmgate milk price at $3.90 per kg, after reducing it from $4.15 per kg this month.

"The low prices have placed a great deal of pressure on incomes, farm budgets and our farming families," Chairman John Wilson said in a statement.

"We have lifted profitability from last season to this season, resulting in higher earnings per share to help offset low global dairy prices."

Fonterra said an interim dividend of $0.20 would be paid in April and two further dividends of $0.10 would be paid in May and August.

($1 = 1.4815 New Zealand dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.