Fonterra doubled its interim dividend after shifting more production to higher-margin products in the face of weak milk powder prices and reported a 123 per cent jump in first-half profit.
Profit was $409 million in the six months ended January 31, from $183 million a year earlier. Revenue fell 9.3 per cent to $8.8million even as volumes rose 8 per cent, while the gross margin widened to 21 per cent from 16 per cent.
Fonterra reiterated its forecast 2015-16 milk payout of $3.90 per kilogram of milk solids, while lifting its first-half dividend to 20c a share. The company has been considering ways to help support its farmer shareholders after offering interest-free loans in a package that cost the company $390 million. That had stretched the balance sheet after Fonterra also took on debt to take a cornerstone stake in China's Beingmate.
Fonterra said it will pay its final dividend earlier than usual - 20c paid in two 10c increments in May and August.
With dividends for the full-year forecast at 40c a share, the cash payout will be $4.30/kgMS.
