Community
26 February, 2025
Fonterra forecasts positive earnings
FONTERRA Co-operative Group Ltd last week provided an update on its forecast earnings for the financial year (FY25), which it anticipates will be in the upper half of the previously announced forecast earnings range of 40-to-60 cents per share.
Chief executive officer Miles Hurrell said the momentum from Q1 had been maintained.
“As we prepare our FY25 interim results for release on March 20, we can see we’ve maintained the momentum from Q1,” he said.
“Further to this, good pasture growth across most of New Zealand to date has meant our forecast collections for the season are up.
“The Co-op’s earnings momentum is driven by strong demand across our 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-to-60 cents per share range.”
Mr Hurrell said Fonterra is in a good position.
“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,” he said.
“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-to-80 per cent of full year earnings, with up to 50 per cent of full year dividend to be paid at interims.”
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