Fonterra placed a trading halt on its units yesterday.
Fonterra placed a trading halt on its units on the NZX yesterday as it works through reviewing its earnings guidance.
It expects to update the market by the end of trading today.
Fonterra Shareholder Fund units last traded at $5.11, down more than 18% from a year ago, having started the year at $6.66 in January.
In a brief notice to the NZX yesterday, Fonterra said it was preparing its annual financial statements for the financial year ended July.
”As a result of the work being undertaken there may be a variation from the earnings guidance previously given to the market,” the company said.
The fund’s units are open to the public and also farmer suppliers. . .
This is very unlikely to be for positive reasons.
The grapevine thinks this might result in a cut to the forecast dividend rather than the farmgate milk price, but that might be wishful thinking.