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Fonterra expects even higher profits and dividends
Dairy giant Fonterra expects to achieve even higher profits and dividends in the ongoing 2024/2025 milk price year than it expected in March. A record year brings even better records, but the future is also a little more uncertain.
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The milk price remains at NZ$10 per kilo of milksolids (combined fat and protein), but the dividend is increased by 5 cents to NZ$0,70 per share.
This is possible because the profit forecast has been raised compared to the second quarter to NZ $1.158 million (converted €610,5 million, more than €23 million more than expected in MarchAccording to CEO Miles Hurrell, this is mainly due to the good performance of the ingredients business. This is also the (future) core activity of Fonterra.
Battle of the arm
For the new milk price year 2025/2026, which starts on 1 July, the milk price forecast is still at NZ$10 per kilo milksolids, but due to the increasing uncertainty in the world, an additional leeway is being taken, Hurrell reports. The lower end of the forecast range is being moved to NZ$8,00 per kilo milksolids.
There is no major news to report yet about the expected sale or separation of the consumer activities, but Fonterra does report that NZ$77 million (over €40 million) in costs will be taken on the alienation of the consumer activities in Australia and Sri Lanka. This will be charged to the expected profit.