Fonterra Begins CEO Search Following Miles Hurrell Resignation
Fonterra chief executive Miles Hurrell has resigned after eight years in the role.
The strong performance has enabled the co-op to return an extra 15c/share dividend to farmer shareholders and unit holders.
The co-op’s final milk price for 2023-24 season is $7.83/kgMS, backed by a total dividend of 55c/share, providing a total cash payout to a fully shared up farmer of $8.38/kgMS for last season.
Chief executive Miles Hurrell says the payout reflects both Fonterra’s continued strong earnings performance and the long-term resilience of the Co-op.
“We’ve maintained the positive momentum seen in FY23 and delivered earnings at the top end of our forecast range.
“Our total dividend of 55c/share is the second largest since Fonterra was formed. It includes a 15c interim dividend and a 25c final dividend driven by strong FY24 earnings.
“In addition, our capital management efficiency and ongoing balance sheet strength have enabled us to return an extra 15 cents per share to farmer shareholders and unit holders through a special dividend.”
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Fonterra collected over 1.47 billion kgMS last season. Profit after tax was $1.168b equivalent to 70c/share.
Hurrell says the co-op is in good shape.
“And I'm pleased to have delivered another year of solid returns to farmer shareholders and unit holders.
“Looking ahead, we’re well placed to consider the next phase of our strategy to grow long-term value for the Co-op.”
The Co-op reported a return on capital for FY24 of 11.3%, above the target range for FY24. Earnings (EBIT) from continuing operations were $1,560 million and continue to be well above previous years, albeit down on FY23 which benefitted from elevated price relativities.
