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. –
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.
免费 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’.
*Returns as of 6/8/2020
- Why the Pilbara Minerals (ASX:PLS) share price is up 12% from Wednesday
- Why the Purifloh (ASX:PO3) share price crashed to a 2-year low today
- Coppermoly (ASX:COY) share price up 355% before trading halt
- Where to invest $10,000 into ASX shares immediately
- The Sezzle (ASX:SZL) share price is up 15% this week
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.