Fonterra Sets Cautious 2024/25 Season Opening with Farmgate Milk Price Forecast and Reports Earnings
Source: The DairyNews
Fonterra has declared its initial forecast for the 2024/25 season farmgate milk price, projecting a range between $7.25 and $8.75 per kilogram of milk solids, with an average price of $8.00 per kg.
Earlier the cooperative reported a net profit after tax of $973 million, a decrease of 27% compared to the previous year. The decline was attributed to last year's inclusion of earnings from Soprole and gains from divestments.
Profits from continuing operations increased slightly by $20 million, or 2%, totaling $1,013 million, equivalent to 61 cents per share.
Miles Hurrell, the Chief Executive, credited the robust financial performance to sustained strong earnings across the cooperative's three main product channels. He highlighted significant gains in the food service and consumer sectors during the third quarter.
Based on these results, Fonterra has revised its forecast for FY24 earnings from continuing operations, raising it to 60-70 cents per share, up from the previously anticipated 50-65 cents per share.
Addressing the upcoming season's milk price forecast, Hurrell noted that despite a recent increase in global dairy prices, the market remains precariously balanced between supply and demand. He mentioned that China's import volumes are yet to return to historical levels.
Considering the uncertainties and potential market volatilities, Fonterra is adopting a cautious stance at the beginning of the season. The cooperative maintains its current season's forecast farmgate milk price at a midpoint of $7.80 per kgMS.
Profits from continuing operations increased slightly by $20 million, or 2%, totaling $1,013 million, equivalent to 61 cents per share.
Miles Hurrell, the Chief Executive, credited the robust financial performance to sustained strong earnings across the cooperative's three main product channels. He highlighted significant gains in the food service and consumer sectors during the third quarter.
Based on these results, Fonterra has revised its forecast for FY24 earnings from continuing operations, raising it to 60-70 cents per share, up from the previously anticipated 50-65 cents per share.
Addressing the upcoming season's milk price forecast, Hurrell noted that despite a recent increase in global dairy prices, the market remains precariously balanced between supply and demand. He mentioned that China's import volumes are yet to return to historical levels.
Considering the uncertainties and potential market volatilities, Fonterra is adopting a cautious stance at the beginning of the season. The cooperative maintains its current season's forecast farmgate milk price at a midpoint of $7.80 per kgMS.
