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) full year results, released 25 Septmeber 2025:

Fonterra reports continued strong performance in FY25

· Total Group revenue: NZ $26 billion, up 15%

· Total cash returns to shareholders: $16 billion, up 30.6%

· Operating profit: NZ $1,732 million, up 13%

· Profit after tax: NZ $1,079 million, down 4%, up 13% tax-adjusted

· Normalised earnings per share: 71 cents, no change, up 13 cents tax-adjusted

· FY25 full year dividend, fully imputed: 57 cents per share, up from 55 cents unimputed

· Return on Capital: 10.9%, down from 11.3%, up from 10.0% tax-adjusted

· 2024/25 final Farmgate Milk Price: NZ $10.16 per kgMS

· 2024/25 season milk collections: 1,509 million kgMS, up 2.6%

· 2025/26 forecast Farmgate Milk Price range: NZ $9.00 – $11.00 per kgMS

· FY26 forecast earnings range: 45-65 cents per share

· 2025/26 season forecast milk collections: revised up to 1,525 million kgMS

Fonterra Co-operative Group Ltd has today released its FY25 annual results which show the Co-op generated $26 billion in revenue and delivered $16.2 billion in total cash returns to shareholders.

The final Farmgate Milk Price for the 2024/25 season was $10.16 per kgMS, equating to $15.3 billion in milk payments to New Zealand farmers, up $3.8 billion on last year.