Fonterra Co-operative Group has reported strong FY25 results, underpinned by higher revenue, record farmer payments and progress on its strategy to focus on Ingredients and Foodservice.
Snapshot
- Total Group revenue: NZ $26 billion, up 15% on prior corresponding period (pcp);
- Total cash returns to shareholders: $16 billion, up 30.6% pcp;
- Operating profit: NZ $1,732 million, up 13% pcp;
- Profit after tax: NZ $1,079 million, down 4%, up 13% tax-adjusted pcp;
- Normalised earnings per share: 71 cents, no change, up 13 cents tax-adjusted; and
- FY25 full year dividend, fully imputed: 57 cents per share, up from 55 cents unimputed
Group revenue rose 15 per cent to NZ$26 billion, while operating profit lifted 13 per cent to NZ$1.73 billion. Total cash returns to shareholders reached NZ$16.2 billion, up 30.6 per cent. Profit after tax eased four per cent to NZ$1.08 billion due to higher tax, but on an adjusted basis rose 13 per cent.
The Co-op declared a fully imputed dividend of 57 cents per share, equating to NZ$916 million, while final Farmgate Milk Price was set at NZ$10.16/kgMS, delivering NZ$15.3 billion to farmers – up NZ$3.8 billion year-on-year. Milk collections rose 2.6 per cent to 1,509m kgMS.
CEO Miles Hurrell said FY25 was “one of the Co-op’s strongest years yet in terms of shareholder returns”. Performance was driven by Ingredients demand for proteins and Foodservice growth in Greater China, while Consumer businesses also grew volumes.
A key milestone was the agreement to sell global Consumer and associated businesses to Lactalis for NZ$4.22 billion, subject to shareholder and regulatory approvals. A farmer vote is set for 30 October 2025. If approved, Fonterra is targeting a capital return of NZ$2.00 per share, or around NZ$3.2 billion.
Looking ahead, the Co-op has lifted its FY26 milk collection forecast to 1,525m kgMS and set a Farmgate Milk Price forecast of NZ$9.00–$11.00/kgMS. Earnings from continuing operations are expected at 45–65 cents per share.
Fonterra plans to invest up to NZ$1 billion over the next three to four years in protein expansion, new butter and cream cheese capacity, and digital transformation. Hurrell said the Co-op remains “well prepared for the future and positioned to continue delivering positive returns.”
