A look at Fonterra's (ASX:FSF) FY22 report card

2 min read | September 22, 2022 08:39 PM PDT | By Bhawna Gupta

A look at Fonterra's (ASX:FSF) FY22 report card — Image source: © Matka_wariatka | Megapixl.com

Fonterra's performance in FY22

Australia's food and beverages company Fonterra reported a normalised profit after tax of NZ$591 million and a 2021/22 Farmgate Milk price of NZ$9.30 per kgMS. According to Fonterra’s ASX filing, the overall revenue went up by 11% from FY 21 to NZ$23.4 billion. Sales volumes declined in FY22 due to short-term fluctuations in demand, persistent shipping issues, and supply delays. However, this happened on account of higher product costs.

The company paid a final cash payout of NZ$9.50 to its farmers with a total dividend of 20 cents per share to its fully shared-up farmers, which consists of a final dividend of 15 cents per share and an interim dividend of 5 cents per share.

Earnings before interest and taxes (EBIT) for the entire Group normalised to NZ$991 million, a rise of NZ$39 million or 4% over the previous year.

Fonterra’s CEO Miles Hurrell claimed that 2021–2022 was a successful year for the company despite challenges such as rising expenses brought on by supply chain unpredictability.

Hurrell further commented:

Data Source- Company announcement dated 23 September 2022

Hurrell claimed that despite limited supply, there was demand for dairy products from clients worldwide.

In FY22, the total operating costs for the Group increased by 7% to NZ$2.4 billion, with underlying operating costs rising partly due to supply costs and inflationary pressures.

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