Dividends

Learn about our dividend policy and our dividend and distribution reinvestment plans.

Dividend per share (cents)

	Year ended 31 July 2024	Year ended 31 July 2023	Year ended 31 July 2022	Year ended 31 July 2021	Year ended 31 July 2020	Year ended 31 July 2019	Year ended 31 July 2018	Year ended 31 July 2017	Year ended 31 July 2016
Interim dividend	15	10	5	5	0	0	10	20	20
Final dividend	40*	40	15	15	5	0	0	20	20^
Total annual dividend	55	50	20	20	5	0	10	40	40

* Final dividend includes 15 cents per share of special dividend
^10 cents per share paid in June and September.

Dividend policy

Under the guidelines, the Board would expect over time to distribute more than half of our net earnings, excluding abnormal gains.

The payout ratio is 60-80% of Reported Net Profit After Tax but excluding abnormal gains.

In addition to the payout ratio, two additional key principles will guide the Board when considering the payment of a dividend:

A dividend should not require our Co-op to take on more debt; and,
A dividend should not reduce our Co-op’s ability to service existing debt.

The distribution of any abnormal gains, such as an asset sale, will be considered separately.

An interim dividend will not be more than 50% of the forecast total dividend and no more than net earnings at half-year.

The Board will apply these guidelines at its discretion, alongside any factors it considers relevant.

Parameters and Guidelines

Net Earnings

Payout ratio of 40-60% of Reported NPAT, but excluding abnormal gains
Distributions of any abnormal gains considered separately

No borrowing to pay dividends

Dividend not to exceed 100% of Available Net Cash Flows
Available Net Cash Flow defined as cash flows available to reduce debt but excluding any material working capital changes considered highly likely to reverse in future periods

Debt serviceability

Measured based on Debt to EBITDA ratio
Dividend payment will not result in Debt to EBITDA ratio in current and forecast year exceeding level required to maintain ‘A’ band credit rating.

Dividend & distribution reinvestment plans

The Fonterra Co-Operative Group Limited Dividend Reinvestment Plan allows farmer shareholders to receive shares in lieu of all or part of a cash dividend. The Fonterra Shareholders’ Fund (Fund) Distribution Reinvestment Plan allows unitholders to receive units in lieu of all or part of a cash distribution.