Fonterra Co-operative Group Ltd recently provided an update on its forecast earnings for FY25, which it anticipates will be in the upper half of the previously announced forecast earnings range of 40-60 cents per share.
“As we prepare our FY25 interim results for release on 20 March, we can see we’ve maintained the momentum from Q1. Further to this, good pasture growth across most of New Zealand to date has meant our forecast collections for the season are up.”
“The Co-op’s earnings momentum is driven by strong demand across our sales channels. Subject to audit, our first half accounts indicate our full year forecast earnings for FY25 will be in the upper half of the 40-60 cents per share range.
“Fonterra’s earnings and the forecast Farmgate Milk Price have both benefitted from solid demand for our high value Ingredients products, and our sales book is well contracted for the season.
“Considering these factors, we expect to be in a position to pay a strong interim dividend. Our revised dividend policy released in September 2024 is 60-80% of full year earnings, with up to 50% of full year dividend to be paid at interims.
Miles Hurrell, CEO, Fonterra
Fonterra is a New Zealand-based multinational dairy cooperative and one of the world’s leading producers of dairy products. Established in 2001 through the merger of New Zealand Dairy Group and Kiwi Co-operative Dairies, Fonterra is owned by around 9,000 dairy farmers and plays a vital role in the country’s economy, contributing significantly to global dairy exports.
The cooperative specializes in producing a wide range of dairy products, including milk powders, cheese, butter, and specialized ingredients for food manufacturers. With a strong presence in over 140 countries, Fonterra supplies dairy ingredients to some of the world’s leading food brands. The company operates on a farm-to-consumer model, ensuring high-quality dairy production with a focus on sustainability, efficiency, and innovation.
Fonterra is at the forefront of dairy research and development, investing in advanced processing technologies and sustainable farming practices. It has introduced initiatives to reduce carbon emissions, improve animal welfare, and enhance water conservation. The company’s sustainability strategy, known as Toitū te Ao, aims to achieve net-zero carbon emissions by 2050 while improving the efficiency of its supply chain.
Beyond dairy ingredients, Fonterra has a strong consumer brand portfolio, including Anchor, Anlene, Anmum, and Fernleaf, catering to various nutritional needs. With its commitment to quality, sustainability, and global food security, Fonterra continues to shape the future of dairy by balancing economic growth with environmental responsibility.