Friday, 21 February 2025 10:37

Fonterra updates earnings

Written by  Staff Reporters
Fonterra has revised its forecast milk collections up to 1,510 million kgMS, following favourable weather conditions. Fonterra has revised its forecast milk collections up to 1,510 million kgMS, following favourable weather conditions.

Fonterra says its earnings for the 2025 financial year are anticipated to be in the upper half of its previously forecast earnings range of 40-60 cents per share.

According to preliminary results, the co-operative has had a strong first half and, alongside the strength in earnings, it is forecasting a 2024/25 Farmgate Milk Price midpoint of $10/kgMS.

In addition, the co-operative has revised its forecast milk collections up to 1,510 million kgMS, following favourable weather conditions.

Miles Hurrell, Fonterra chief executive, says that as the co-operative prepares its 2025 interim results, the momentum from the first quarter appears to have been maintained.

“Further to this, good pasture growth across most of New Zealand to date has meant our forecast collections for the season are up,” Hurrell says.

He says Fonterra’s earnings momentum is driven by strong demand across its 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 40-60 cents per share range,” he adds.

“Fonterra’s earnings and the forecast Farmgate Milk Price have both benefitted from solid demand for our high value Ingredients products, and our 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 60-80% of full year earnings, with up to 50% of full year dividend to be paid at interims,” Hurrell concludes.

More like this

Aussie farmers get A$8.60/kgMS as opening milk price

Australian dairy farmers supplying Fonterra are getting an opening weighted average milk price of A$8.60/kgMS for the new season or around NZ$9.26/kgMS -  NZ74c less than New Zealand suppliers, based on the current exchange rate.

Featured

LIC Space folds for good

Farmer co-operative LIC has closed its satellite-backed pasture measurement platform – Space.

Editorial: Time for common sense

OPINION: The case of four Canterbury high country stations facing costly and complex consent hearing processes highlights the dilemma facing the farming sector as the country transitions into a replacement for the Resource Management Act (RMA).

National

DairyNZ Farmers Forum underway

Over 300 farmers and rural professionals have gathered in Hamilton for the first DairyNZ Farmers Forum for this year.

Machinery & Products

Shearing legend hooked on CanAm

Sir David Fagan, world-renowned competitive sheep shearer with 642 shearing titles worldwide and a knighthood to his name, now runs…

50 years of tractor pull

This year, the Fieldays Tractor Pull, in association with PTS Logistics, mark a major milestone – 50 years of crowd-thrilling…

The Wrangler's birthday bash

It's the Wrangler Limited’s 30th birthday and to celebrate the milestone a prototype of the E Series Wrangler - a…

» Latest Print Issues Online

Milking It

Free speech

OPINION: The Free Speech Union is taking this one too far.

Drug survey

OPINION: New national data from The Drug Detection Agency (TDDA), a leading workplace drug tester, shows methamphetamine (meth) use is…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter