Fonterra Projects Robust Earnings and Sets Milk Price Forecasts for 2025-26
Source: dairynews.today
Fonterra announces an optimistic earnings forecast for FY25 and sets the Farmgate Milk Price for 2025/26, emphasizing strong shareholder returns.
Fonterra Co-operative Group Ltd has announced a robust financial projection, revealing a normalised profit after tax of NZ $1,158 million, marking an 11% increase. The company's FY25 earnings per share are projected to rise by 13% to 70 cents.
The co-op has narrowed its year-end earnings range to 65-75 cents per share, reflecting confidence in sustained performance. The 2024/25 season's Farmgate Milk Price remains stable at $10.00 per kgMS, and this price is forecasted for the 2025/26 season as well, supported by ongoing stable demand. The current season’s milk price injects approximately $15 billion into New Zealand’s economy, significantly benefiting regional communities.
Fonterra CEO, Miles Hurrell, expressed optimism about the company's strategy focused on core business areas like Ingredients and Foodservice. The co-op is progressing towards divesting its global Consumer business, aiming to enhance value for shareholders with a strategic pivot supported by stable financial returns and expanded operational scale. With operating profit rising to $1,740 million and a 12-month return on capital of 11%, Fonterra is poised to maintain strong shareholder returns while adhering to a strategic realignment that could include a possible IPO or trade sale of its Consumer businesses.
As the fiscal year concludes, Fonterra is positioned with a resilient balance sheet, ensuring debt metrics align below target ranges.
The co-op has narrowed its year-end earnings range to 65-75 cents per share, reflecting confidence in sustained performance. The 2024/25 season's Farmgate Milk Price remains stable at $10.00 per kgMS, and this price is forecasted for the 2025/26 season as well, supported by ongoing stable demand. The current season’s milk price injects approximately $15 billion into New Zealand’s economy, significantly benefiting regional communities.
Fonterra CEO, Miles Hurrell, expressed optimism about the company's strategy focused on core business areas like Ingredients and Foodservice. The co-op is progressing towards divesting its global Consumer business, aiming to enhance value for shareholders with a strategic pivot supported by stable financial returns and expanded operational scale. With operating profit rising to $1,740 million and a 12-month return on capital of 11%, Fonterra is poised to maintain strong shareholder returns while adhering to a strategic realignment that could include a possible IPO or trade sale of its Consumer businesses.
As the fiscal year concludes, Fonterra is positioned with a resilient balance sheet, ensuring debt metrics align below target ranges.
