Fonterra Co-operative Group Ltd has provided an update on its forecast earnings for FY25.
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.
“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 to 80 percent of full-year earnings, with up to 50 percent of full-year dividend to be paid at interims.”
