Dairy cooperative Fonterra has posted a mid-year rise in revenue and an interim dividend as the average cost of milk, its main input cost, soared nearly 30 per cent on the same time last year. 

As expected because of the high milk price it is paying farmers, normalised profit after tax of $364 million was down 13 per cent on the corresponding period last year, and reported profit after tax was down 7 per cent. 

Group revenue was at $10.7 billion, up 9 per cent. 

New Zealand's biggest business will pay its farmer-shareholders an interim dividend of 5c per share. A 5c interim dividend was also paid last year breaking a mid-year dividend drought since 2018, when Fonterra posted an interim net profit after tax loss of $348m. 

Normalised ebit was 11 per cent down at $607m. 

Net debt was $5.6b, down 8 per cent. 

The company announced chief financial officer Marc Rivers would leave the job after the annual meeting later this year. He joined the world's sixth-largest dairy company by revenue in 2018. 

Chief executive Miles Hurrell said the earnings achieved showed the company was performing well even with a high farmgate milk price. 

It anticipates paying a record milk price to farmers of $9.30-$9.90/kg milksolids this dairy season, which the company says at a mid-point of $9.60 would mean an injection of $14b for the New Zealand economy. 

Hurrell said looking forward to full-year 2022, forecast normalised earnings guidance of 25-35c per share remained unchanged. 

Total group operating expenditure at $1,062m was up 1 per cent on the same period last year. 

Normalised ebit for the Greater China business was down 20 per cent at $236m. 
Also down was normalised ebit for the Asia Pacific business, which posted a 33 per cent ebit decrease at $158m. 

Normalised ebit for Africa, Middle East, Europe, North Asia and the Americas division was up 25 per cent at $250m. 

Hurrell said the company was making progress on the divestment of its Chilean business and the ownership review of the Australian operations. 

"Both Soprole [Chile] and Fonterra Australia are performing well and our priority is to maximise the value of both businesses to the co-op." 

"We will take our time to ensure the best outcomes from these processes and remain confident on delivering on our intention to return around $1 billion of capital to our shareholders and unit holders by FY24." 

The company was also continuing to work with the Government on a regulatory framework which supports its new capital structure, voted in by shareholders late last year.