The cooperative reported a 94 per cent increase in first quarter earnings before interest and tax (ebit) to $368m; normalised net profit of $214m, up 84 per cent; and earnings per share of 13c compared with 7c at the same point last year.
Fonterra told the market that the strong performance was driven by ingredients that reflected continued favourable margins in its protein portfolio, particularly casein and caseinate products used in medical nutrition.
Jeremy Sullivan, investment advisor with Hamilton Hindin Greene, said the robust upgrades from Fonterra and Air New Zealand increased investor sentiment.
“Fonterra has (total) revenue of $22.9 billion in the country’s gross domestic product of $360b. It makes up a good part of the economy and Fonterra should be allowed to increase its dividend payments. When the velocity of that money is spread around it benefits all parts of the community,” Sullivan said.
Air New Zealand, with a market capitalisation of $2.6b, gained 1.5c or 1.96 per cent to 78c after significantly upgrading its half-year earnings to $295m-$325m, from $200m-$275m.
The airline said continued strong domestic and international travel demand and a decline in jet fuel prices has accelerated its financial recovery. Air NZ expects to fly at 75 per cent of pre-Covid capacity on its entire network in December.
Across the Tasman, the S&P/ASX 200 Index was down 0.67 per cent to 7181.3. The crude oil price fell further to US$72.97 a barrel.
Dividend stocks Chorus increased 11c to $8.21; Contact Energy was up 12c to $7.84; Genesis added 3c to $2.60; Vector collected 10c or 2.46 per cent to $4.16; and Infratil gained 14c to $8.91.
Ebos Group increased 34c to $42.04; Gentrack was up 5c or 2.06 per cent to $2.48; and Rua Bioscience gained 1.5c or 6.52 per cent to 24.5c.
Transport and logistics stocks T&G Gobal increased 9c or 3.81 per cent to $2.45; and Move Logistics rose 4c or 4.26 per cent to 98c.
New Zealand King Salmon Investments rebounded 3c or 16.28 per cent to 25c after being sold down when it was revealed appeals had been launched against its consent for open ocean farming.
Channel Infrastructure, down 1c to $1.45, told the market it was working with its customers, BP, Mobil and Z Energy, on a product correction plan which involved the blending of some of the off-speculation fuel with existing stocks at Marsden Point to meet New Zealand regulations.
Retailers Briscoe Group was down 8c to $4.87; KMD Brands shed 3c or 2.78 per cent to $1.05; and Michael Hill declined 4c or 3.36 per cent to $1.15.
Leading banks ANZ was down 40c to $25.05, and Westpac decreased 39c to $24.65.
Skellerup Holdings was down 9c to $5.42, Property for Industry fell 5c or 2.09 per cent to $2.34; Ventia Services declined 6c or 2.06 per cent to $2.85; SkyCity Entertainment decreased 5c or 1.86 per cent to $2.64; Eroad shed 3c or 2.56 per cent to $1.14; and Tourism Holdings was down 12c or 3.39 per cent to $3.42.
Rural services firm PGG Wrightson declined 8c or 1.89 per cent to $4.15; Scott Technology fell 12c or 4.41 per cent to $2.20; Rakon was down 3c or 2.78 per cent to $1.05; Comvita decreased 9c or 2.8 per cent to $3.12; and MHM Automation was down 3c or 3.7 per cent to 78c.
Other decliners were Task (formerly Plexure Group) down 1.5c or 3.75 per cent to 38.5c; Smartpay Holdings decreasing 4c or 3.74 per cent to $1.03; and Livestock Improvement Corp shedding 5c or 3.7 per cent to $1.30.
New Listing Blackpearl Group, down a further 3c or 7.14 per cent to 39c, received a price enquiry from NZX. The software firm said it continued to comply with its continuous disclosure obligation – having fallen from a listing price of $1.25 last Friday.
Director Simon Shakesheff has been appointed Kiwi Property chair, replacing Mark Ford who has resigned after 11 years’ service. Kiwi’s share price was unchanged at 92.5c.
