2022 Annual Results slide image

2022 Annual Results

Total Group business performance million 2021 2022 %A2 Sales volume ('000 MT) Revenue ($) 4,102 3,924 (4)% 21,124 23,425 11% Cost of goods sold ($) (18,010) (20,085) (12)% Gross profit ($) Gross margin (%) 3,114 14.7% 3.340 14.3% 7% Operating expenses ($) (2,242) (2,397) (7)% Other³ ($) 80 48 (40)% Normalised EBIT ($) 952 991 4% Normalised profit after 588 591 1% tax4 ($) Normalised EPS5 (cents) 34 35 3% Note: Total Group figures are for the year ended 31 July. This includes continuing and discontinued operations and are on a normalised basis unless otherwise stated 1. 2021 performance includes Ying and Yutian China Farming hubs and China Farms joint venture, which were sold during FY21 2. Percentages as shown in the table may not align to the calculation of percentages based on numbers in the table due to rounding of figures Fonterra Dairy for life • · Increased revenue from higher product prices, partially offset by lower sales volumes reflecting lower milk collections in the first nine months of the year and shipping disruptions Higher gross profit despite increased cost of milk, driven by gross margin achieved in Ingredients, particularly in the protein portfolio Operating expenses up due to inflationary pressures, supply chain disruption and impairment of some of our Asia brands 'Other' includes $(80) million adverse revaluation of the Sri Lankan business payables due to devaluation of the rupee Normalised profit after tax is up $3 million, due to higher earnings and favourable interest expense Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss on equity accounted investees 3. 4. Includes amounts attributable to non-controlling interests 5. 6. 5 Attributable to equity holders of the Co-operative, excludes $23 million of normalised profit after tax attributable to non-controlling interests The impairment includes a $22 million impairment of Anlene, an $11 million impairment of Anmum and a $1 million impairment of Chesdale, with the carrying amount of these brands now at $336 million as at 31 July 2022. Our Asia brands also include Anchor which was not impaired 5
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