By Phil Boeyen, ShareChat Business News Editor
|
Monday 25th February 2002 |
Text too small? |
The surplus was on the strength of $7 billion in revenue with 518 million kilograms of milk solids supplied by the co-operative's dairy farmer shareholders.
The company says the result reflected good international market prices at the beginning of the interim period, although notes that more recently prices have fallen, especially sharply for milk powder.
"For the purpose of these interim financial statements, it has been assumed that this operating surplus will be paid out to suppliers. The board will decide on the final payment to suppliers at the end of the financial year," the group says.
The result marks the first trading period for Fonterra, which was formed last October through the merger of Kiwi Dairies, New Zealand Dairy and the Dairy Board.
Chief financial officer, Graham Stuart, describes the company's progress in its first trading period as satisfactory.
"The challenge ahead of us is to maintain our performance in the more difficult international environment for the remainder of the financial year."
"Dairy farming in New Zealand is seasonal. Accordingly, Fonterra's financial performance in the first half of the year is not necessarily indicative of the likely full-year outcome."
Fonterra has shareholders' equity of $5.1 billion and non-current assets of $6.1 billion, including brands valued at $1.6 billion. Independent valuations with respect to fixed assets and brands will be included in year-end financial statements.
Fonterra is one of the world's leading dairy companies, with an annual turnover of approximately $14 billion and manufacturing facilities in 35 countries.
No comments yet
