Fonterra profit forecast positive
Released 24 Feb 2010
Federated Farmers is welcoming a minimum 10 percent uplift in Fonterra Cooperative Group's Distributable Profit forecast range for the 2009/2010 season.
"It's a very good marker that we are seeing the Distributable Profit forecast range increase to 40 to 50 cents per share, from last December's forecast of 35 to 45 cents per share," says John Bluett, Federated Farmers Dairy vice-chairperson.
"While it isn't locked, the forecast represents an increase of between 10 and 12.5 percent and shows just how sound the Cooperative's fundamentals are.
"Importantly, this now forms part of a retentions policy with a forecast 10 to 30 cents per share of Distributable Profit being retained to grow and strengthen the Cooperative.
"This is something Federated Farmers has asked for and we are very happy to see this new retentions policy in action.
"It could be that shareholders are seeing the first green shoots of farmers capital investment in the Cooperative," Mr Bluett concluded.
For further comment:
John Bluett, Federated Farmers Dairy vice-chairperson, 07 825 9709, 027 444 7613
Willy Leferink, Federated Farmers Dairy vice-chairperson, 03 307 2666, 021 796 037
