23 March 2016
Interim Results in Line with Expectations,
Acceleration of Dividend Welcomed by Farmers
Fonterra Shareholders’ Council Chairman, Duncan Coull, said today’s interim results announcement was in line with
forecasts, and the expectations of the Council.
Mr Coull noted that the Board’s decision to pay out an interim dividend of 20 cents per share, and to accelerate the
final dividend payments, would be very well-received by Farmer Shareholders and go some way to alleviating immediate
on-farm cash-flow pressures.
“With the forecast Milk Price remaining at $3.90 per kg/MS, Farmer Shareholders’ expectations are that the value-add
side of their business will provide them the much talked about counter-cyclical benefits.
“The results in this regard are encouraging in that the business, on the back of weaker global demand, has moved volume
into higher value which has contributed to the lift in interim profit.
“A clear focus on driving cash into the business is also evident in terms of free cash flow and a reduction in gearing
ratio.
“It is important that the Board continues to drive the business forward as the performance of some business units, such
as Australia, Venezuela and China Farms are having a negative effect on the business.
“However, the Council looks forward to the current positive momentum continuing and translating into more cash for our
Farmers.”
ENDS