March 17, 2020 / 8:42 PM / 11 days ago

BRIEF-Fonterra Posts HY Normalised NPAT Of NZ$293 Mln

March 18 (Reuters) - Fonterra Co-Operative Group Ltd :

* FULL YEAR FORECAST NORMALISED EARNINGS 15-25 CENTS PER SHARE

* ELECTED TO NOT PAY AN INTERIM DIVIDEND

* HY NORMALISED NET PROFIT AFTER TAX NZ$293 MILLION, UP FROM $72 MILLION

* KEY FINANCIAL TARGETS FOR 2020 TO ACHIEVE A GROSS MARGIN IN EXCESS OF NZ$3 BILLION

* IS NOW OPERATING IN A VERY DIFFERENT GLOBAL CONTEXT AS A RESULT OF COVID-19

* ELECTED TO NOT PAY INTERIM DIVIDEND CONSIDERING CURRENT UNCERTAINTY OF IMPACT COVID-19

* REAFFIRMS SECOND HALF FORECAST FARMGATE MILK PRICE RANGE OF NZ$7.00-NZ$7.60 PER KGMS

* THERE IS NO DOUBT THAT WE HAVE A NUMBER OF RISKS THAT ARE OUTSIDE OUR CONTROL IN H2

* COMPLETED STRATEGIC REVIEWS ON CHINA FARMS AND DPA BRAZIL, & SALES PROCESSES FOR BOTH ASSETS ARE WELL UNDER WAY

* REVISED DOWN VALUATION OF CHINA FARMS & DPA BRAZIL BY A TOTAL OF NZ$134 MILLION

* REDUCED VALUE OF OUR CHINA FARMING JOINT VENTURE BY NZ$65 MILLION

* NOT CUTTING COSTS IN AREAS THAT ARE ALIGNED TO OUR STRATEGY

* AT END OF FY, BOARD WILL REASSESS FINANCIAL POSITION AND REVIEW DECISION TO PAY A DIVIDEND

* “ONGOING DRY WEATHER CONDITIONS HERE IN NEW ZEALAND WHICH COULD IMPACT COLLECTIONS AND POTENTIALLY INPUT COSTS”

* HY REVENUE FROM CONTINUING OPERATIONS NZ$10,071 MILLION, UP 7%

* KEY 2020 TARGETS INCLUDE CUTTING DEBT SO ITS NO MORE THAN 3.75X EARNINGS & CAPEX LESS THAN NZ$500 MILLION Source text for Eikon: Further company coverage: (Reuters.Briefs@thomsonreuters.com)

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