Fonterra Co-operative Group Ltd has increased its FY25 full-year earnings guidance from 40 to 60 cents per share to 55 to 75 cents per share.
CEO Miles Hurrell said it was pleasing to see the Co-op delivering strong earnings performance alongside a NZD 10.00 per kgMS forecast Farmgate Milk Price midpoint, which was an excellent outcome for farmer shareholders.
“As we have finalised the preparation of our interim results and looked at the balance for the year ahead, we are pleased to confirm an upgrade in our full-year forecast earnings range,” said Hurrell.
“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.”
He added that Fonterra’s Consumer channel has shown good volume and margin growth while recovering the higher Farmgate Milk Price this season.
Fonterra will release its FY25 interim results on the 20th of March 2025 and will confirm its interim dividend on that date.
The Co-op’s dividend policy is 60 to 80 percent of full-year earnings, with up to 50 percent of the full-year dividend to be paid at interims.
Earlier in February, the co-op has anticipated that in FY25, its earnings will be in the upper half of the previously announced forecast earnings range of 40 to 60 cents per share.
“As we prepare our FY25 interim results for release on the 20th of 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,” said CEO Miles Hurrell.
“The Co-op’s earnings momentum is driven by strong demand across our sales channels. Subject to audit, our first half accounts indicate our full-year forecast earnings for FY25 will be in the upper half of the 40 to 60 cents per share range.”
Fonterra’s earnings and the forecast Farmgate Milk Price have both benefitted from solid demand for its high-value ingredients products and its sales book is well contracted for the season.
Read more local FMCG news here
