Fonterra Shareholders’ Fund - Annual Financial Results for FY2024
FSF (FSF) Share Update September 2024 Tuesday 24th
Fonterra Shareholders’ Fund Reports Strong Financial Results for FY2024
Fonterra Shareholders’ Fund (FSF) has announced its annual financial results for the year ended 31 July 2024, showcasing a significant increase in revenue and a robust final distribution to unit holders.
Instant Summary:
- 93% increase in total revenue to $158 million.
- Final distribution of $0.40 per unit.
- Net tangible assets per unit rose to $3.95 from $3.53.
- Record date for final distribution: 2 October 2024.
- Payment date for final distribution: 11 October 2024.
Financial Performance
Fonterra Shareholders’ Fund has reported a remarkable 93% increase in total revenue, amounting to $158 million for the fiscal year ending 31 July 2024. This significant growth is attributed to net fair value movements of Economic Rights of Fonterra Shares and dividend income.
The net tangible assets per unit have also seen a substantial increase, rising from $3.53 in the previous year to $3.95 in the current year. This reflects the strong performance and financial health of the Fund.
Distribution to Unit Holders
In light of the impressive financial results, Fonterra Shareholders’ Fund has declared a final distribution of $0.40 per unit. The record date for this distribution is set for 2 October 2024, with the payment date scheduled for 11 October 2024.
Unit holders will benefit from a total cash distribution of $0.55 per unit for the year, including the interim distribution of $0.15 per unit paid in April 2024. This marks a significant return for investors, highlighting the Fund’s commitment to delivering value to its unit holders.
Operational Highlights
Fonterra’s profit after tax from continuing operations was $1.17 billion, equivalent to 70 cents per unit. Including discontinued operations, the total Group profit after tax was $1.13 billion, equivalent to 67 cents per unit. The variation in profit is primarily due to favorable price relativities in the Ingredients channel and the gain on the sale of Soprole in FY23.
The Fund has also benefited from Fonterra’s strategic allocation of milk away from the Ingredients channel to the Foodservice and Consumer channels, which saw improved earnings. This strategic shift has partially offset lower margins in the Ingredients channel, demonstrating Fonterra’s ability to leverage its scale and market diversification.
The significant increase in revenue and the substantial final distribution are likely to positively impact the Fund’s stock price. The rise in net tangible assets per unit and the strong financial performance of Fonterra will boost investor confidence and attract more investments.
Investor Reaction:
Analysts are expected to react positively to the strong financial results, particularly the 93% increase in revenue and the robust final distribution. The strategic shift in Fonterra’s operations to focus on higher-margin channels is also seen as a positive move, enhancing the overall profitability and sustainability of the Fund.
Conclusion:
Investors should take note of the impressive financial performance of Fonterra Shareholders’ Fund and consider the potential long-term benefits of holding units in the Fund. The strong revenue growth and substantial distributions highlight the Fund’s ability to deliver consistent returns. Investors are encouraged to stay informed about the Fund’s future developments and strategic initiatives.