Fonterra Co-operative Group Limited (NS) Analysis

Overview

Fonterra Co-operative Group Limited (NS) (Fonterra) is a dairy co-operative, owned and supplied by nearly 9,000 farming families in Aotearoa, New Zealand. Through the spirit of co-operation and a can-do attitude, Fonterra’s farmers, along with 20,000 employees around the world, share the goodness of our milk through innovative consumer, foodservice and ingredient brands. Sustainability is at the heart of everything we do, and we’re committed to leaving things in a better way than we found them. Everyday people working hard to be Good Together in the community.

The Fonterra Shareholders' Fund (FSF) is a registered managed investment scheme under the Financial Markets Conduct Act 2013. The FSF provides investors an opportunity to invest in the performance of Fonterra. Outside investors who are not allowed to hold shares in Fonterra can invest in units in the FSF which gives them access to economic rights (such as distributions and capital movements), similar to those of a share.

Performance

The following information was extracted from Fonterra Co-operative Group Limited's (NS) Interim results, released 20 March 2025:

Fonterra’s momentum delivers strong FY25 interim earnings and dividend

• Operating profit: NZ $1,107 million, up 16%

• Profit after tax: NZ $729 million, up 8%

• Earnings per share: 44 cents per share, up 10%

• Return on capital: 10.2% down from 13.4%

• Interim dividend, fully imputed: 22 cents per share

• Forecast Farmgate Milk Price range narrows: NZ $9.70 - $10.30 per kgMS

• Forecast milk collections: 1,510 million kgMS, up 2.7%

• FY25 full year forecast earnings range: 55-75 cents per share

Fonterra Co-operative Group Ltd today announced a positive FY25 interim result as the Co-op continues to make good progress on implementing its strategy.

Fonterra has reported a half year Profit after Tax of $729 million, earnings of 44 cents per share and a decision to pay an interim dividend of 22 cents per share, alongside a 2024/25 season forecast Farmgate Milk Price midpoint of $10.00 per kgMS.

Fonterra CEO Miles Hurrell says it’s pleasing to be able to deliver these results for farmer shareholders and unit holders.

“We’re focusing on driving value which includes delivering strong financial performance while achieving the highest sustainable Farmgate Milk Price," says Mr Hurrell.