Fonterra has increased its full-year FY25 earnings guidance, raising the forecast from 40-60 cents per share to 55-75 cents per share.
Chief executive Miles Hurrell says the co-op’s strong earnings performance, alongside a $10 per kilogram of milk solids forecast farmgate milk price midpoint, was a positive outcome for farmer shareholders.
The $10 per kgMS forecast is a record price reflecting ongoing strength of the global market. Its previous best milk price was $9.30/kgMS, paid in 2021-22.
“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,” Hurrell says.
“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 says.
Fonterra will release its FY25 interim results on March 20, at which time it will confirm its interim dividend.
The co-op’s dividend policy is to pay out 60-80% of full-year earnings, with up to 50% of the full-year dividend to be paid at interims.
