Fonterra launches strategy to boost returns, targeting 10-12% return on capital and 60-80% dividend policy.

Fonterra, New Zealand's dairy co-operative, has launched a new strategy aimed at boosting returns and shareholder dividends. The plan targets a return on capital of 10-12% and a dividend policy of 60-80% of earnings. This shift emphasizes high-performing ingredients and food service sectors, particularly in China, while exploring divestment of its consumer brands. The strategy aims to enhance value creation for farmer shareholders and improve operational efficiency.

6 months ago
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