Fonterra has delayed the publication of its annual financial results. Photo: Lynn Grieveson.

The results were due to be released next Thursday. The dairy co-operative says it will now publish them no later than the end of the month.

“Fonterra and the Co-operative’s auditor PwC, are working constructively through the normal financial year end accounts and auditing process. However, due to the significant accounting adjustments in FY19 (financial year 2019) … more time is required to complete the audited financial statements,” it said in a statement.

Last month, Fonterra said it was writing down the value of underperforming assets by as much as $860 million, which would result in a substantial annual loss.

It has confirmed it it still expects the annual loss to be between $590m and $675m – a 37 to 42 cent loss per share.

The co-operative said the delay was unrelated to an inquiry from the Financial Markets Authority about its previous accounting or speculation that further asset writedowns are being contemplated.

Among the assets which could be further written down are Fonterra’s infant formula and dairy farm investments in China, its Chilean and Australian businesses.

It said the delay and the writedowns would not affect its ability to operate and pay its bills, including paying farmers for their milk.

This article was originally published on RNZ and re-published with permission.

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