Dairy giant Fonterra is on a financial roll and it wants to send a new wave of confidence through the country’s cowsheds. It upgraded its earnings guidance to 50 – 70c per share from 45 – 60c per share. Contrast that with the 20c it paid for the 2021-22 season.
At the same time, it lowered and narrowed its forecast Farmgate Milk Price range of $8.50 – $10.00kg/MS to $8.50 – $9.50kg/MS, with a midpoint of $9.00 while holding its advance rate. It also reported a strong start to the 2023 financial year.
Fonterra CEO Miles Hurrell said it was a positive start to the year given the current global operating environment.
“We continue to feel the impact of geopolitical and macroeconomic events, with higher costs at every point in our supply chain. It’s a similar story behind the farm gate with our farmer shareholders managing significantly higher input costs”.
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