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

 


Fonterra profit down but revenue on track for $20 billion

26 March 2014

Fonterra profit down but revenue on track to break $20 billion

Fonterra Cooperative Group’s half year results means it could be back on track to break the $20 billion revenue barrier; corporate New Zealand’s ‘four minute mile.’

“I think the fall in operating profit will grab attention instead of where it ought to be focussed, on revenue,” says Willy Leferink, Federated Farmers Dairy chairperson.

“This is real money coming into the New Zealand economy. I mean revenue for the half-year is up 21 percent to $11.3 billion. While we’ve got close to the $20 billion barrier in the past, this time, we’ve got a real chance of breaking it.

“That said, the declared drought in Northland along with drought-like conditions in the upper North Island could act like a brake. We’ve also seen GlobalDairyTrade retreat in recent trading events due in part to increased volume.

“That’s to be expected since we are in a global commodity market.

“Yet what this interim result means is that every Kiwi benefits from what farmers and Fonterra does.

“Almost $7 billion dollars is spent locally by Fonterra supplier-shareholders, so it’s like a shot of adrenalin into the bloodstream of our economy, the provinces.

“We also know that with every dollar in the payout farmer’s receive, it puts $300 into the back pocket of every man, woman and child. If we include the dividend, a forecast $8.75 per kilogram of milksolids means we are talking thousands of dollars.

“That’s the dairy dividend everyone has a stake in.

“Of course, the fall in profit is concerning and reflects the higher cost of milk. Profit is a direct marker for value-add and the overall performance of the co-op as a company.

“As shareholders we need to ask questions because the dividend leaves a little bit of a sour taste in an otherwise spectacular half year,” Mr Leferink concluded.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news