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

 

Fisheries: Report On Underrsize Snapper Catch

The report found that commercial fishers caught 144 tonnes of undersized snapper in the Snapper 1 area – about 3% of the total commercial catch – in the year ending February 2015. The area stretches from the top of the North Island to the Bay of Plenty and is one of New Zealand’s most important fisheries. More>>

ALSO:

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news