Insights

Fonterra Shareholders’ Fund (ASX:FSF) share price higher after annual result

The Fonterra Shareholders’ Fund share price was higher today after Fonterra announced its result for the 2020 financial year.
The post Fonterra Shareholders’ Fund (ASX:FSF) share price higher after annual result appeared first on Motley Fool Australia. –

Fish eye view of dairy cows in paddock

The Fonterra Shareholders’ Fund (ASX: FSF) share price was up 0.27% at the time of writing to $3.73. This came after the company released its annual result for the year ended 30 June 2020.

What was in the announcement?

The Fonterra Shareholders’ Fund had revenue of NZ$6 million in the year to 30 June 2020 (FY20). Its FY20 net profit was nil. 

According to the fund’s FY20 report, Fonterra Cooperative Group’s reported net profit after tax was NZ$659 million, up NZ$1.3 billion compared to the prior year. The report stated that the underlying business performance improved, with Fonterra’s food service business having a significantly better first half, especially in Greater China. However, this improved performance was partially offset by the disruption caused by COVID-19.

Fonterra’s consumer business performance was down compared to the prior year. This was attributed to business disruptions in Hong Kong and Chile, and impairments to the company’s Chesdale brand and goodwill in the New Zealand consumer business. 

Free cash flow for the Fonterra business increased by NZ$733 million during FY20 to NZ$1.8 billion. This was achieved through a combination of improved earnings, lower capital expenditure and the sale proceeds received from the divestment of DFE Pharma and Foodspring, along with a reduction in the company’s Beingmate shareholding.

The Fonterra Shareholders’ Fund announced a final dividend of 5 NZ cents per unit, which is unfranked. The ex-dividend date is 24 September 2020.

Outlook for FY 2021

According to the report, there is a high level of uncertainty for Fonterra entering the 2021 financial year due to the global recession and the potential for new waves of COVID-19 to affect the dairy industry. However, Fonterra’s CEO, Miles Hurell, has stated that he intends to keep to the group’s current strategy, which includes spreading its reach in global markets.

About the Fonterra Shareholders’ Fund share price

The Fonterra Shareholders’ Fund is a managed investment scheme that allows shareholders to invest in the performance of the Fonterra Co-operative Group, which is listed in New Zealand.

The Fonterra Shareholders’ Fund share price is up 26.87% since its 52-week low of $2.94, however, it is down 7% since the beginning of the year. 

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Fonterra Shareholders’ Fund (ASX:FSF) share price higher after annual result appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!