Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fonterra affirms forecast payout, issues bonus shares

Fonterra holds forecast payout for current season; will issue bonus shares, units

By Paul McBeth

Feb. 27 (BusinessDesk) - Fonterra Cooperative Group, the world's biggest dairy exporter, has held its forecast farmgate payment on expectations of higher global prices in the second half of the season, and wants to grow its winter milk supply, meaning a tinkering with the capital structure.

Farmers are still expected to be paid $5.50 per kilogram of milk solids, with forecast earnings per share unchanged at between 40 cents and 50 cents, the Auckland-based cooperative said in a statement. That's based on the dollar holding at current levels for the rest of the season, and a stronger currency may impact the forecast, it said.

We had a strong start to the season and milk collection volumes were running 6 percent ahead of last season on a year-to-date basis," chief executive Theo Spierings said. "However, the dry conditions mean we are currently forecasting total milk collection volumes to finish approximately 1 percent ahead of the full season."

Separately, Fonterra said it plans to issue one share or unit in the Shareholders' Fund for every 40 held on April 12 at no cost to match any increase in production next season. The cooperative intends to introduce a dividend reinvestment plan in October, and plans to conduct another supply offer for farmer shareholders to sell their dividend rights into the fund last this year.

The dairy exporter has modified its growth contracts to give more time and options for growing farmers to buy shares which meet their production.

The issue will increase the share base by 2.5 percent, and while diluting dividends per share or unit, won't impact on the total return to farmers and investors, Fonterra said.

"With a stable capital base, we now have certainty and can offer farmers more ways to grow milk supply and given them more time to share up," chairman John Wilson said.

Fonterra Shareholder Fund units are 31 percent above their offer price at $7.27 and shares in the cooperative last traded at $7.20.

The company also announced it will spend more than $100 million on a new UHT processing plant at its Waitoa plant in the Waikato as it aims to double UHT production over the next few years.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news