Fonterra appoints new CFO
Fonterra has appointed a new chief financial officer, seven months after its last CFO’s shock resignation.
Fonterra chairman John Monaghan says the co-op's new strategy sounds simple, but the best strategies often are.
Click here to read about Fonterra's new strategy.
“Simplicity shouldn’t be confused with a lack of ambition,” he said.
Fonterra’s earnings range forecast for 2019-20 starts at 15-25 cents per share. The five year plan is to achieve a target of 50c/share.
“Our starting earnings range reflects our change in culture. We will earn the right to make ambitious decisions by first doing the basics right and returning our balance sheet to a position of strength. That will give us options to go for the opportunities which we create in the future.”
The board also reviewed the dividend policy guidelines within the context of the new strategy. Monaghan says the new guidelines better reflect the annual performance and financial strength of the cooperative.
“Under the new guidelines, we would expect the dividend payment to be 40-60% of reported net profit after tax, excluding any abnormal gains, from what was previously 65-75% of adjusted NPAT over a period of time. An interim dividend will not be more than 40% of the forecast total dividend and no more than net earnings at half year.
“In addition to the new percentage of earnings, two additional key principles will guide our board when considering the payment of a dividend. A dividend should not require our co-op to take on more debt, and a dividend should not reduce our co-op’s ability to service existing debt.
“The distribution of any abnormal gains, such as an asset sale, will be considered separately,” he said.
More bull breeders are using genetic tools according to the latest research.
Females are dominating the veterinary profession worldwide and many farmers are welcoming this change in the composition of the profession, says Britain's Chief Veterinary Officer (CVO) Professor Christine Middlemiss.
A five-year randomised survey of herbicide resistance on New Zealand arable farms has found widespread high levels of resistance - with 71% of farms affected in the worst-hit region - South Canterbury.
OPINION: The recent Federated Farmers / Rabobank 2024 Farming Salaries Report revealed strong growth in farm salaries over the past two years.
The low unemployment environment is one of the key factors driving on-farm salaries higher over the past 24 months, says Rabobank general manager for country banking Bruce Weir.
Fonterra has appointed a new chief financial officer, seven months after its last CFO’s shock resignation.
OPINION: Canterbury milk processor Synlait is showing no sign of bouncing back from its financial doldrums.
OPINION: It seems every bugger in this country can get an award these days.