Fonterra defers full-year results

By Rebecca Howard

Sept. 6 (BusinessDesk) - Fonterra Cooperative Group will now report its full-year result no later than Sept. 30 as it needs more time to complete its audited financial statements after significant write-downs.

The company was previously slated to report on Sept. 12. Today it confirmed prior guidance that it expects to report a loss of $590-675 million for the year to July 31, which is a 37-42 cent loss per share. It also noted the numbers are subject to the board reviewing the full financial statements and to audit adjustments, and reflect the values attributable to equity holders.

Fonterra and auditor PwC are "working constructively" through the normal financial year-end accounts and auditing process, it said.

"However, due to the significant accounting adjustments in FY19, as set out in the announcement on 12 August 2019, more time is required to complete the audited financial statements," it said.

"The change in reporting date is unrelated to any discussions with the Financial Markets Authority, recent speculation about further material asset impairments, or other announcements. It also does not affect the cooperative’s ability in any way to operate and pay its bills, including paying farmers for their milk," it said.

On Aug. 12, chief executive Miles Hurrell said that, after a full review of the business during the past year, it became clear that Fonterra needed to reduce the carrying value of several of its assets. That, and other one-off accounting adjustments, will total $820-860 million.

Units in the Fonterra Shareholders' Fund last traded at $3.22 while shares owned by farmers were at $3.23. Both have shed around 31 percent so far this year.

(BusinessDesk)

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