2022 Annual Results
Drivers of return on capital
NZD million
2021
2022
Total Group normalised EBIT
952
991
Finance income on long-term advances
8
7
Notional tax charge
(155)
(161)
Total Group normalised EBIT plus finance income
on long-term advances less notional tax charge
805
837
Capital employed at year end
Impact of seasonal capital employed
Average capital employed
Return on capital (%)
10,863
12,179
1,418
12,281
177
12,356
6.6% 6.8%
Fonterra
Dairy for life
Return on capital improved from 6.6% to
6.8%, reflecting:
increase in normalised EBIT, partially
offset by;
o additional working capital increasing
our average capital employed
The impact on the average capital
employed from the higher working capital
in the second half was largely offset by
lower net debt in the first half
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