New Zealand dairy co-op Fonterra has increased its full year earnings for 2025 (FY25) from 40-60 cents per share to 55-75 cents (€0.29-0.40) per share.
Miles Hurrell, Fonterra chief executive, said that the co-op was “delivering strong earnings performance” alongside a $10.00 per kilogramme of milk solids (MS) forecast farmgate milk price midpoint.
Hurrell added that this is “a great outcome for farmer shareholders”.
“As we have finalised preparation of our interim results, and looked at the balance of the year ahead, we are pleased to confirm an upgrade in our full year forecast earnings range.
“This upgrade reflects the underlying strength of our core ingredients business and the resilience in our consumer channel, which is contributing to a robust result for businesses in the divestment perimeter.
“Our Consumer channel has shown good volume and margin growth while recovering the higher farmgate milk price this season,” he said.
Fonterra is due to release its FY25 interim results on March 20, 2025 and will confirm its interim dividend on that date.
The co-op’s dividend policy is 60-80% of full year earnings, with up to 50% of the full year dividend to be paid at interims.
Fonterra
Meanwhile, Fonterra is today (Monday, March 10) commencing roadshow meetings with potential investor groups as part of the divestment process for its global consumer and associated businesses.
These roadshow meetings are a step towards potential initial public offering (IPO).
The business to be divested would be known as “Mainland Group” if Fonterra proceeds with an IPO.
The dairy platform had a net revenue of NZ$4.9 billion in 2024 and includes 15 manufacturing sites which sell products into over 20 countries.
The roadshow meetings will be held in New Zealand, Australia and Asia.
Fonterra chief executive Miles Hurrell said that the meetings are an important step in the process of testing the merits and value of an IPO, which the co-op is exploring as a divestment option alongside a trade sale.
“We are pleased to be making progress in both the potential trade sale and IPO processes and will continue to keep our farmer shareholders, employees and the market updated on milestones,” he said.
