Fonterra Co-operative Group Ltd has indicated that its earnings for the 2025 financial year are expected to be in the upper half of its previously forecast range of 40 to 60 cents per share.
The dairy co-operative, which is preparing to release its interim results on 20 March, attributed the positive outlook to strong demand across its sales channels and improved milk collections.
Fonterra Chief Executive Officer Miles Hurrell said preliminary results suggest the co-op has maintained the momentum from the first quarter, with favourable weather conditions contributing to higher-than-expected milk supply.
The company has revised its forecast milk collections for the 2024/25 season to 1,510 million kgMS, reflecting good pasture growth across most of New Zealand.
Hurrell noted that the co-op’s earnings performance and Farmgate Milk Price forecast had been bolstered by strong demand for high-value ingredients products.
Fonterra is currently forecasting a 2024/25 Farmgate Milk Price midpoint of $10.00 per kgMS, a figure that aligns with the company’s expectations for the season.
The CEO also indicated that, subject to audit, the co-op anticipates being in a position to pay a strong interim dividend.
Under its revised dividend policy announced in September 2024, Fonterra plans to distribute 60 to 80 per cent of full-year earnings, with up to 50 percent of the full-year dividend to be paid at interim results.
The full details of the co-op’s financial performance will be outlined in its upcoming interim results announcement.
