|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
Fonterra delivers another strong result for FY26
|
|
Monday, 30 March, 2026, 12 : 00 PM [IST]
|
|
New Zealand
|
Fonterra Co-operative Group Limited?has its FY26 interim results,?showing continued?momentum in its performance?with?revenue?of $13.9?billion?in the first half of the?financial year.?
It announced an?interim dividend of 24?cents?per share,?fully imputed?from continuing operations and confirmed a special?Mainland dividend of 16?cents per share, fully imputed,?representing?100% of Mainland Group’s FY26 earnings while under Fonterra ownership.?
The co-op has also lifted its forecast Farmgate Milk Price midpoint for the season from $9.50 per kgMS to $9.70?per kgMS, with the range changing?from?$9.20 - $9.80 per kgMS to $9.40?- $10.00?per kgMS.?
Given the strength of?these interim?results,?and contracted commitments for the second half of the year, the co-op have also?adjusted?full year earnings guidance?for continuing operations?from?45-65 cents per share to 50-65 cents per share.?
CEO Miles Hurrell says these changes?to the forecast Farmgate Milk Price and earnings?reflect?improvement in global commodity prices and?the co-op’s strong underlying margins and cost control,?but?notes?that?significant?volatility?remains, particularly as the conflict in the Middle East continues.?
“The underlying performance of Fonterra’s continuing business is?stable,?allowing?the Co-op to return all earnings associated with the Mainland Group business and lift our?forecasts?for the?remainder?of the year ahead.?Demand?for our products?is?strong,?and?we’re?focused on our plan?to maximise both the Farmgate Milk Price and earnings,” said Hurrell.?
The record date for?the?two?dividend payments will be 30 March,?and the payment date will be 14?April. This is?also the date Fonterra is targeting for payment of the $2.00 per share capital return from the Mainland Group divestment,?based?on?the transaction completing at the end of March.?
Total Group reported operating profit increased to?$1,231?million?from?$1,107?million?the year prior.?
Reported profit after tax?is?$750?million, equivalent to earnings per share of?45?cents?and up on 44 cents last year. When excluding the costs associated with the Consumer divestment, Fonterra’s normalised earnings per share?is?51?cents.
The co-op delivered a Return on Capital of?11.2%,?up on this time last year and?in line with the target range of 10-12%.
“The first half of the year has been shaped by strong milk flows, with the co-op collecting record milk volumes in the South Island so far this season. When combined with several adverse weather events, these conditions have put pressure on the operations of all New Zealand milk processors.?We have?been able to navigate through these challenges?due to the resilience of our network. Our performance shows that we are growing the high-value parts of our business through optimal allocation of milk solids across our product mix, which is driving a strong return on capital for shareholders and?unit holders," said Hurrell.
|
|
|
|
|
|
|
|
|
|