Fonterra adds to share dividend

17-Aug-2016 - Last updated on 18-Aug-2016 at 11:22 GMT

Fonterra says it is trying to help its farmers by bringing forward its dividend payment.

Fonterra Co-operative Group Limited has confirmed it will pay a further NZ$0.10 ($0.07) per share on its previously announced 2015/16 forecast dividend of NZ$0.40 ($0.29) cents per share.

Fonterra said it had already brought forward an earlier dividend payment during the last financial year in an effort to deliver as much cash as quickly as possible to its farmers.

Fonterra chairman John Wilson said the intention was to declare a further dividend in August, subject to financial performance.

“We are seeing early signs of the expected recovery in dairy prices but we know conditions on farm are challenging,” Wilson said.

No change to forecast total dividend

He added that there is no change to the forecast earnings range or the forecast total dividend of NZ$0.40 ($0.29) per share for the 2016 financial year.

“We will confirm our end of season Farmgate Milk Price and total payout as part of our annual results announcement on September 22,” he added.

Fonterra Shareholders’ Fund unit holders will receive a distribution payment of 10 cents per unit.

The record date for the early payment of the dividend and distribution is September 1, and the payment date is September 9.