Tatua Financial Results For The Year Ended 31 July 2024

The Tatua Board of Directors and Executive met on 3 October 2024 to consider the financial results for the 2023/24 financial year and to finalise the milksolids payout to supplying shareholders.

The supply season had a challenging start, marked by a very wet spring and limited sunshine hours which adversely affected pasture growth and quality, and therefore milk production.

Fortunately, the El Niño-induced drought that was forecast for later in the season didn’t eventuate, and instead, regular summer rainfall led to good late season pasture growth. This enabled production to be maintained, increasing full-season shareholder supply to 2.57% above the prior season.

We are pleased to report that the financial performance of the business has remained strong, achieving Group income of $497 million and earnings available for payout of $184 million.

Normalisation of unprecedented high protein commodity prices of the prior year, in combination with prioritising available milksolids to value-add production, resulted in a substantial drop in revenue in our Bulk Ingredients division of caseinate, whey protein concentrate (WPC) and anhydrous milkfat (AMF). Pleasingly however, we were still able to achieve our second highest revenue ever, for what remains an important part of the business.

The combined revenue from our more specialised Nutritionals, Foods, and Flavours divisions was our highest ever, reflecting our continued focus on developing these less commoditised product offerings.

Our overall earnings equated to $12.20 per kilogram of shareholder supplied milksolids, before retentions for reinvestment. From this, we have confirmed a cash payout to shareholders of $10.50 per kilogram of milksolids supplied and have retained $1.70 per kilogram of milksolids, equivalent to $26 million before tax, for reinvestment in the business.

As usual when determining our pay-out, we have sought to balance the near-term needs of our shareholders’ farming businesses, with the requirement to continue investing for Tatua’s resilience and future prosperity.

Our year end gearing (debt divided by debt plus equity) increased to 23% from the prior year low of 16%, reflecting the funding impact of our current Foods plant capacity expansion.

In addition to the sound financial result, good progress was made in many areas across the business, making for another very complete year.

Along with our milk suppliers, our teams in New Zealand and our offshore subsidiaries have continued to demonstrate their capability and dedication to the business, contributing to everything that has been achieved.

We extend our gratitude to our customers and all who have partnered with us, and look forward to another productive year ahead.

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