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) market update, released 28 May 2026

Sustained performance in Q3 as Fonterra executes on strategy; announces 2026/27 Farmgate Milk Price

• Total Group operating profit: NZ $1.8 billion, up $103 million relative to prior year

• Underlying earnings per share: 57 cents per share, up from 53 cents

• FY26 full year forecast earnings range lifted and narrowed to: 60-70 cents per share, up from 50-65 cents per share

• 2025/26 season forecast Farmgate Milk Price narrows: NZ $9.60-$9.80 per kgMS, from $9.40-$10.00, with the midpoint unchanged at $9.70 per kgMS

• Announced opening 2026/27 season forecast Farmgate Milk Price of $9.75 within a range of $8.00 – $11.00 per kgMS

• Season to date milk collections: 1,489m kgMS, up 4% on last season

Mainland Group performance improved during the first half of this year, primarily due to a favourable commodity price cycle.

Fonterra has today released its FY26 Q3 business update, demonstrating sustained performance and progress on the Co-op’s strategy, with year to date Total Group operating profit of $1.8 billion, up $103 million on this time last year.

The Co-operative has lifted and narrowed its full year forecast earnings range to 60-70 cents per share, due to confidence in the Co-op’s contracted sales position for FY26 and our ability to navigate ongoing supply chain disruption.

The forecast Farmgate Milk Price midpoint for the current season is unchanged at $9.70 per kgMS, with the range narrowing to $9.60-$9.80 per kgMS.

The Co-operative has also announced an opening forecast Farmgate Milk Price for the 2026/27 season of $9.75 with a range of $8.00-$11.00 per kgMS to reflect potential impacts across the season from ongoing geopolitical risks and inflationary pressures.