Fonterra holds payout forecast despite volatility
Confirms forecast payout for 2011/12 of $7.15-$7.25 before retentions.
Fonterra has confirmed its forecast payout for 2011/12 of $7.15-$7.25 before retentions, including a forecast milk price of $6.75/kgMS and forecast distributable profit range of 40-50c a share.
Chairman Sir Henry van der Heyden says the recent fall in food commodity prices was largely anticipated when Fonterra announced its opening forecast for 2011/12.
"In volatile economic and market conditions, we could face a range of factors that may affect the season's Milk Price. But at this very early stage of the season we see no reason to alter the forecast," Sir Henry said.
"We will continue to monitor possible slowing global economic growth that might translate into weaker dairy demand."
Outgoing chief executive Andrew Ferrier says Fonterra has finalised its budget for the 2012 financial year.
The forecast distributable profit range remains at $570-$720 million, which would equate to a forecast range of 40-50c a share.
Dividend payments are expected to be made in accordance with the Fonterra dividend policy to pay out 65-75% of underlying profit (adjusted for one-off items and other factors).
For the previous 2010/11 season and financial year ended July 31 2011, Fonterra will announce its final milk price and distributable profit when it publishes its annual financial results in late September.
The current 2010/11 payout forecast is $8.00-$8.10 per kgMS before retentions (milk price of $7.50 per kgMS and a distributable profit range of 50-60c a share)
Niko Kloeten
Fri, 02 Sep 2011
Fri, 02 Sep 2011
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Fonterra holds payout forecast despite volatility
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