Sun, 25 Sep 2022

WELLINGTON, Sept. 22 (Xinhua) -- Mew Zealand's dairy gaint Fonterra announced a strong set of results for the financial year ending July 31, 2022, reflecting a 2021/22 farmgate milk price of 9.3 NZ dollars (5.41 U.S. dollars) per kgMS (milk solids) and normalized profit after tax of 591 million NZ dollars (344 million U.S. dollars).

With a total dividend of 20 cents per share to the company's fully shared-up farmers, comprising of an interim dividend of 5 cents per share and a final dividend of 15 cents per share, the final cash pay-out for farmers is 9.5 NZ dollars (5.53 U.S. dollars), according to the annual report released on Thursday.

Total group normalized Earnings Before Interest and Taxes (EBIT) was 991 million NZ dollars (577 million U.S. dollars), up 4 percent over the prior year, the report showed.

Fonterra's Chief Executive Miles Hurrell said despite challenges including increased costs associated with supply chain volatility, 2021/22 was a good year for the co-operative group.

"These results demonstrate that our decisions relating to product mix, market diversification, quality products and resilient supply chain, mean the co-op is able to deliver both a strong milk price and robust financial performance in a tough global operating environment," Hurrell said.

The co-operative group is pleased to be able to pay a total dividend of 20 cents per share for the farmer owners and unit holders, he said, adding this year's higher farmgate milk price is the strongest it has ever been, which is great news for the farmers.

New Zealand also benefits from this, with 13.7 billion NZ dollars (8 billion U.S. dollars) returned into the economy in milk price payments alone this year, the report showed.

Focusing on New Zealand milk, be a leader in sustainability and a leader in dairy innovation and science, the company set a goal of a return of about 1 billion NZ dollars (580 million U.S. dollars) to shareholders and unitholders, it said.

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