- Fonterra expects FY25 earnings to be in the upper half of its forecast range.
- The Co-op has raised its milk collection forecast to 1,510 million kgMS.
- A strong interim dividend is anticipated, supported by solid demand for key products.
Fonterra Co-operative Group Ltd has provided an update on its forecast earnings for the 2025 financial year, expecting them to be in the upper half of its previously announced range of 40-60 cents per share.
The Co-op has experienced a strong first half of the year, with its current forecast for the 2024/25 Farmgate Milk Price midpoint set at $10.00 per kgMS. Additionally, Fonterra has revised its milk collection forecast upward to 1,510 million kgMS, driven by favourable weather conditions.
“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,” says CEO Miles Hurrell.
Hurrell also highlighted that strong demand across Fonterra’s sales channels has contributed to its earnings momentum. “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 been supported by solid demand for its high-value Ingredients products. The Co-op has also secured favourable contract positions for the season, strengthening its overall financial outlook.
“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,” says Hurrell.