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Full Year 2023 Fonterra Co-Operative Group Ltd Earnings Call Transcript

Published Sep 21, 2023

12 pages (6731 words) — Published Sep 21, 2023

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Abstract:

Edited Transcript of FCG.NZ earnings conference call or presentation 21-Sep-23 1:30am GMT

Brief Excerpt:

...Thanks for joining us. Welcome to our 2023 annual results briefing. I'm Miles Hurrell, CEO of Fonterra, and I'm here with Neil Beaumont, our Chief Financial Officer. We're going to kick things off with an overview of our performance before asking Neil to take us through the numbers. And then we're over to you to ask your questions. Before we get into it, I want to start by acknowledging and thanking our farmers and our people right across the corporate. We know it's tough on farm right now, but it's great to be reporting such a strong set of results today. Looking at the core metrics, profit after tax is up $994 million to $1.6 billion due to favorable margins in Ingredients Channel and the gain on sale of Soprole. The significant lift in earnings has meant the Co-op's return on capital has increased this year to 12.4%, up from 6.8% last year. And earnings per share increased from $0.36 to $0.95 per share. However, this has been against the backdrop of a Farmgate Milk Price that has dropped...

Report Type:

Transcript

Source:

Thomson StreetEvents

Company:

Fonterra Co-Operative Group Ltd

Ticker

FCG.NZ

Time

1:30am GMT

Format:

PDF

The following is excerpted from the question-and-answer section of the transcript. (Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session) Question: Nick Mar - Macquarie Research - Analyst : Okay. Just one more on the CapEx. If you look at the at -- from '24 (inaudible) it's about 9% higher than what it was in the LTA for the same period. Would you characterize the majority of this just price adjusting strong (inaudible) in the last couple of years? Or is this sort of a step change? And ultimately, where is the step change between the sort of different buckets? And then finally on that, there's sort of (inaudible) the additional CapEx (inaudible) sort of long-term earnings. Question: Nick Mar - Macquarie Research - Analyst : Yes, typically (inaudible) should have been particularly much incremental earnings on that CapEx. Question: Nick Mar - Macquarie Research - Analyst : And then thinking about sort of using the balance sheet -- times are tougher for farmers as we've seen and sort of we'll see how long this goes on for (inaudible) relative breakeven. What other mechanisms would you consider outside of the (inaudible) rate changes that you've already made to support farmers -- was sort of that sustained period of (inaudible) prices?

The following is excerpted from the question-and-answer section of the transcript.

(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)

Question: Nick Mar - Macquarie Research - Analyst : Okay. Just one more on the CapEx. If you look at the at -- from '24 (inaudible) it's about 9% higher than what it was in the LTA for the same period. Would you characterize the majority of this just price adjusting strong (inaudible) in the last couple of years? Or is this sort of a step change? And ultimately, where is the step change between the sort of different buckets? And then finally on that, there's sort of (inaudible) the additional CapEx (inaudible) sort of long-term earnings.

Question: Nick Mar - Macquarie Research - Analyst : Yes, typically (inaudible) should have been particularly much incremental earnings on that CapEx.

Question: Nick Mar - Macquarie Research - Analyst : And then thinking about sort of using the balance sheet -- times are tougher for farmers as we've seen and sort of we'll see how long this goes on for (inaudible) relative breakeven. What other mechanisms would you consider outside of the (inaudible) rate changes that you've already made to support farmers -- was sort of that sustained period of (inaudible) prices?

Full Year 2024 Fonterra Co-Operative Group Ltd Earnings Call Transcript – 2024-09-25 – US$ 54.00 – Edited Transcript of FCG.NZ earnings conference call or presentation 25-Sep-24 1:30am GMT

Half Year 2024 Fonterra Co-Operative Group Ltd Earnings Presentation (Pre-recorded) Transcript – 2024-03-21 – US$ 54.00 – Edited Transcript of FCG.NZ earnings conference call or presentation 21-Mar-24 10:59am GMT

Half Year 2024 Fonterra Co-Operative Group Ltd Earnings Call Transcript – 2024-03-20 – US$ 54.00 – Edited Transcript of FCG.NZ earnings conference call or presentation 20-Mar-24 11:45pm GMT

Fonterra Co-Operative Group Ltd Annual Shareholders Meeting Transcript – 2023-11-08 – US$ 54.00 – Edited Transcript of FCG.NZ shareholder or annual meeting 8-Nov-23 9:30pm GMT

Full Year 2023 Fonterra Co-Operative Group Ltd Earnings Call - Pre-recorded Transcript – 2023-09-21 – US$ 54.00 – Edited Transcript of FCG.NZ earnings conference call or presentation 21-Sep-23 10:59am GMT

Fonterra Co-Operative Group Ltd Extraordinary Shareholders Meeting Transcript – 2023-07-25 – US$ 54.00 – Edited Transcript of FCG.NZ shareholder or annual meeting 25-Jul-23 10:30pm GMT

Fonterra Co-Operative Group Ltd Q3 2023 Earnings Call Transcript – 2023-05-25 – US$ 54.00 – Edited Transcript of FCG.NZ earnings conference call or presentation 25-May-23 12:00am GMT

Half Year 2023 Fonterra Co-Operative Group Ltd Earnings Call Transcript – 2023-03-16 – US$ 54.00 – Edited Transcript of FCG.NZ earnings conference call or presentation 16-Mar-23 1:30am GMT

Full Year 2022 Fonterra Co-Operative Group Ltd Earnings Call Transcript – 2022-09-22 – US$ 54.00 – Edited Transcript of FCG.NZ earnings conference call or presentation 22-Sep-22 1:30am GMT

Full Year 2022 Fonterra Co-Operative Group Ltd Earnings Call (Pre-Recorded) Transcript – 2022-09-21 – US$ 54.00 – Edited Transcript of FCG.NZ earnings conference call or presentation 21-Sep-22 9:00pm GMT

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MLA:	Thomson StreetEvents. "Full Year 2023 Fonterra Co-Operative Group Ltd Earnings Call Transcript" Sep 21, 2023. Alacra Store. Nov 06, 2026. <http://www.alacrastore.com/thomson-streetevents-transcripts/Full-Year-2023-Fonterra-Co-Operative-Group-Ltd-Earnings-Call-T15749391>

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Full Year 2023 Fonterra Co-Operative Group Ltd Earnings Call Transcript

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