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.

September 29, 2024
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