Fonterra Increases Full Year Earnings and Milk Price Outlook
Fonterra raised its annual earnings outlook and farmgate milk price today. The dairy group posted a profit rise but warned of potential Middle East risks.
Fonterra Co-operative Group has upgraded its full-year earnings outlook following a steady rise in half-year profits, though the company cautioned that the conflict in the Middle East could disrupt supply chains and increase operational costs. The New Zealand-based dairy producer reported a profit after tax of NZ$750 million ($436.05 million) for the six months ended January 31, representing a 3% increase from the NZ$729 million recorded during the same period last year.
The cooperative raised its full-year earnings guidance for continuing operations to a range of 50–65 NZ cents per share, up from its previous forecast of 45–65 NZ cents. This upgrade reflects improved global commodity prices alongside strong underlying margins and effective cost management. Shareholders are set to receive an interim dividend of 24 New Zealand cents per share, an increase from 22 cents a year earlier, while the company also confirmed a special Mainland dividend of 16 cents per share.
