EN 中文 DE FR عربى

Fonterra Reports Significant Profit and Updates Forecasted Milk Price

New Zealand 04.06.2025
Source: dairynews.today
274 EN 中文 DE FR عربى
New Zealand's dairy giant Fonterra announces a notable profit increase, forecasted milk prices, and strategic adjustments amid global uncertainty.
Fonterra Reports Significant Profit and Updates Forecasted Milk Price
Source: company

Fonterra, the New Zealand co-op, has reported a profit after tax of NZ$1.158 billion for the third quarter, marking an 11% increase from the previous year. This surge of NZ$119 million in profits has led the company to revise its year-end earnings range to 65-75 cents per share, aligning with the higher end of its previously guided range.

The company has also disclosed an opening forecast for the farmgate milk price for the 2025/26 season at $10.00 per kg of milk solids (MS), influenced by stable near-term market demand. Miles Hurrell, Fonterra’s Chief Executive, emphasized their focus on delivering robust shareholder returns through earnings and farmgate milk price, having provided a 22-cent interim dividend for the financial year 2025.

Despite geopolitical uncertainties, Fonterra remains optimistic, maintaining its forecast for the current season's milk price at $9.70-$10.30 per kg/MS, which significantly contributes around $15 billion to the New Zealand economy. Hurrell acknowledged that a substantial portion of this revenue supports regional communities throughout the nation.

In terms of financial performance, Fonterra’s third-quarter normalised profit hit $1.158 billion, reflecting a thriving Ingredients channel and growth in foodservice and consumer channels. The company’s strategy, which has included the potential divestment of its global consumer businesses, aims to focus on high-performing sectors to ensure sustainable returns. As Fonterra prepares to present this divestment option to farmer shareholders, it remains committed to maintaining its global reach and diverse product mix.


Key News of the Week
Calendar