Fonterra (ASX:FSF) revises 2023 earnings guidance; Kalkine Media discusses why

September 09, 2022 11:01 AM AEST | By Sonal Goyal

Fonterra (ASX:FSF) revises 2023 earnings guidance; Kalkine Media discusses why — Image source: © Lucidwaters | Megapixl.com

What is the upgraded 2023 earnings guidance?

According to today’s release, the company has increased the earnings guidance from 30 to 45% per share to 45 to 60% per share. In addition to this, the company has updated the estimated milk collection for 2022/23 season.

Reportedly, it has been decreased from 1,510 million kilograms of milk solids (kgMS) to 1,495 million kgMS.

Why did Fonterra revise its earning guidance for 2023?

Miles Hurrell, CEO, Fonterra, said that the earnings guidance has been uplifted because of the ongoing solid dairy demand witnessed by the firm. The demand for dairy was so strong that the company has confirmed that it has achieved the top end of the earnings guidance for the financial year 2022 (FY22).

According to the ASX announcement, the demand at the end of FY22 has improved prices and posted higher margins across the company’s non-reference products, especially in protein products and cheese.

Hurrell highlighted that whole milk powder prices were also lifted recently on GDT (Global Dairy Trade). He added:

About Fonterra

Fonterra claims that it is one of the world’s leading milk processors and dairy exporters and is a preferred partner of various leading food companies. The company owns a dairy brand in Latin America, the Middle East, Africa, Asia, Australia and New Zealand.

Share price snapshot

Including today’s gain, Fonterra's share price has increased by 5.64% in a month. In six months, it has dropped by nearly 10%, and the year-to-date fall is 21.29%. In last five years, the share price has dropped by 48.44%.

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