Fonterra says it has lifted its “distributable profit” forecast by 5c for the current 2009-2010 season to between 40c to 50c a share - but doesn’t plan to pass on the extra earnings to its 10,500 farmers.
Distributable profit is the total surplus from Fonterra’s business available for distribution to farmer shareholders by way of dividend, and was previously estimated last December at 35c to 45c a share.
The company said today it was making no change to the “target dividend range” of 20c to 30c a share.
“This would indicate 10c to 30c a share…will be retained,” it said.
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