Share
- Release Date: 24/09/13 18:30
- Summary: FORECAST: FSF: Fonterra Guidance on 2014, Lifts 2014 Cash Payout Forecast
- Price Sensitive: No
- Download Document 2.36KB
FSF
24/09/2013 16:30
FORECAST
REL: 1630 HRS Fonterra Shareholders' Fund (NS)
FORECAST: FSF: Fonterra Guidance on 2014, Lifts 2014 Cash Payout Forecast
FONTERRA PROVIDES GUIDANCE ON 2014,
LIFTS 2014 CASH PAYOUT FORECAST
Fonterra Co-operative Group Limited today provided guidance to the market on
an increase to its Forecast Farmgate Milk Price for the 2014 season, and the
likely impact on earnings for the current financial year.
Chairman John Wilson said the Co-operative announced today that it has
increased its Forecast Farmgate Milk Price for the 2014 season by 50 cents to
$8.30 per kgMS. The increase - along with an estimated dividend of 32 cents
per share - amounts to a Forecast Cash Payout for 2014 of $8.62.
"The record Forecast Farmgate Milk Price reflected continuing strong
international prices for dairy, particularly Whole Milk Powder driven by
robust demand from Asia, especially China. We are still facing high levels
of volatility around the world."
Chief Executive Theo Spierings said the business, however, also faces
headwinds, especially in the first half of the current financial year when we
expect earnings will be significantly lower than the strong performance in
the first half of 2013.
"The higher cost of goods will make it more difficult to drive earnings
growth in our consumer and foodservice businesses in the first half of this
financial year. We also expect to see a negative impact on our product mix
returns during the first half of the current year as milk powder prices
significantly outpace the relative prices of cheese and casein.
"Prospects for the second half look more positive for our consumer
businesses, but remain uncertain for NZ Milk Products.
"Our estimated dividend of 32 cents per share for 2014 currently remains
unchanged. Fonterra can draw upon its balance sheet and cash flow
performance to support the estimated dividend.
"It is difficult to predict when extreme price volatility on product mix will
reverse, but expectations are that the impact is likely to be short-term.
"We continue to have confidence in our Volume and Value strategy in our key
markets. Looking ahead, prospects for the dairy industry and for Fonterra
look positive and our growth ambitions remain unchanged," said Mr Spierings.
Fonterra will announce its 2013 Annual Results tomorrow morning.
End CA:00241514 For:FSF Type:FORECAST Time:2013-09-24 16:30:26
