Fonterra Australia FY23 Results

Fonterra Australia delivered EBIT of NZ$75 million (AU$69.3 million), while paying a record-high milk price for Australian farmers and managing an operating cost increase of 23% on FY22. 

Fonterra Australia delivered EBIT of NZ$75 million (AU$69.3 million), while paying a record-high milk price for Australian farmers and managing an operating cost increase of 23% on FY22. 

Operating expenses were impacted by one off costs of NZ$27m (AU$25m) relating to the class action settlement agreement with Fonterra Australia milk suppliers in relation to milk price during the 2015/2016 season.

In real terms, Fonterra Australia’s Actual Earnings were NZ$102 million. 

Fonterra Australia achieved sales volume and revenue growth and continued to grow milk market share to around 17%, amid a declining milk pool.

EBIT was down 29% on the previous year, although Fonterra Australia maintained a healthy business in the face of significant challenges, such as volatile economic conditions, cost of living pressures for our consumers and our farmers, and a declining Australian milk pool.

Fonterra Australia reported profit after tax of AU$20 million for FY23, a decline of 64% from the previous year.

Our integrated business model and strategic asset base delivered the solid result in an Australian market that has been challenging for many dairy producers.