Dividend per share (cents)

NZ Cents

Year ended 

31 July 2020

Year ended
31 July 2019
Year ended
31 July 2018
Year ended
31 July 2017
Year ended
31 July 2016
Interim dividend 0 0 10 20 20
Final dividend 5 0 0 20 20*
Total annual dividend 5 0 10 40 40

* 10 cents per share paid in June and September.

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Dividend & distribution reinvestment plans

The Fonterra Co-Operative Group Limited Dividend Reinvestment Plan allows farmer shareholders to receive shares in lieu of all or part of a cash dividend. The Fonterra Shareholders’ Fund (Fund) Distribution Reinvestment Plan allows unitholders to receive units in lieu of all or part of a cash distribution.

PDF

Distribution Reinvestment Plan January 2020

PDF

Dividend Reinvestment Plan January 2020

PDF

Distribution reinvestment plan FMCA notice, 27 November 2014

PDF

Dividend reinvestment plan FMCA notice, 27 November 2014

Dividend policy

Under the new guidelines, the Board would expect over time to distribute half of our net earnings, excluding abnormal gains

Previously, the Dividend Policy was 65-75% of adjusted Net Profit After Tax over a period of time. The new guidelines better reflect the annual performance and financial strength of the Co-operative.

An interim dividend will not be more than 40% of the forecast total dividend and no more than net earnings at half-year.

In addition to the new payout percentage, two additional key principles will guide the Board when considering the payment of a dividend:

  • A dividend should not require our Co-op to take on more debt; and,
  • A dividend should not reduce our Co-op’s ability to service existing debt.

The distribution of any abnormal gains, such as an asset sale, will be considered separately.

The Board will apply these new guidelines at its discretion, alongside any factors it considers relevant.

Parameters and Guidelines

 
Net Earnings
  • Payout ratio of 40-60% of Reported NPAT, but excluding abnormal gains
  • Distributions of any abnormal gains considered separately
 
No borrowing to pay dividends
  • Dividend not to exceed 100% of Available Net Cash Flows
  • Available Net Cash Flow defined as cash flows available to reduce debt but excluding any material working capital changes considered highly likely to reverse in future periods
 
Debt serviceability
  • Measured based on Debt to EBITDA ratio
  • Dividend payment will not result in Debt to EBITDA ratio in current and forecast year exceeding level required to maintain ‘A’ band credit rating.