Fonterra Provides FY25 Earnings And Milk Collections Update

Fonterra Co-operative Group Ltd. announced an updated earnings forecast for its 2025 financial year today, projecting earnings in the upper half of its previously guided range of 40 to 60 cents per share. This positive outlook is based on strong performance in the first half of the financial year. The predicted average farmgate milk price is US$10.00 per kilogram of milk solids (kgMS) for 2024/25, a result of favorable weather conditions that have led to increased milk collections, projected to reach 1,510 million kgMS.

CEO Miles Hurrell commented, "As we prepare our interim results for the 2025 financial year, to be released on March 20th, we are seeing continued momentum from the strong first quarter. Furthermore, excellent pasture growth across much of New Zealand to date means our forecast seasonal collections have increased."

The cooperative's revenue is supported by consistent demand across all sales channels, and audited results indicate that the full-year earnings forecast will fall within the upper half of the 40-60 cent per share range. This positive earnings outlook and the predicted farmgate milk price are attributed to sustained demand for Fonterra's high-quality ingredient products and strong seasonal sales.

Mr. Hurrell added, "Given these factors, we expect to be able to pay a substantial interim dividend. Our revised dividend policy, released in September 2024, targets a payout of 60-80% of annual earnings, with up to 50% of the full-year dividend paid in interim periods."