Dairy co-operative Fonterra has decided not to sell a stake in its Australian business, a decision that could reduce the NZD 1 billion in returns slated for shareholders.
Fonterra CEO, Miles Hurrell, said: “Even though we have decided not to sell a stake in our Australian business, we are still committed to targeting a significant capital return to our shareholders and unitholders. The amount of any capital return will ultimately be determined on a number of factors, including the successful completion of the divestment programme as well as our ongoing debt and earnings levels.”
The co-op has outlined its strategy to focus on New Zealand milk. In the company’s FY22 results, Hurrell said Australia plays an important role in Fonterra’s consumer strategy “with a number of common and complementary brands and products and as a destination for our New Zealand milk solids”.
© FoodBev Media Ltd 2023
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