WELLINGTON, May 29 (Xinhua) -- New Zealand's dairy giant Fonterra Co-operative Group has announced strong financial results and a stable outlook, with a record-high Farmgate Milk Price and continued solid earnings for the 2024/25 fiscal year.
The dairy giant reported a profit after tax of 1.16 billion New Zealand dollars (692.4 million U.S. dollars), up 11 percent year-on-year, driven by improved performance across its ingredients, foodservice, and consumer channels, according to Fonterra's Q3 business update released on Thursday.
Earnings per share rose 13 percent to 70 cents, while return on capital reached 11 percent, within the Co-op's long-term target range of 10-12 percent, the report said.
Fonterra has narrowed its full-year earnings forecast for fiscal 2025 to 65-75 cents per share, it said, citing a robust third-quarter performance.
"We are heading into year-end with a strong balance sheet and full year debt metrics on track to be below the Co-op's target range," said Fonterra CEO Miles Hurrell.
The Co-op has confirmed its 2024/25 Farmgate Milk Price forecast midpoint at 10 NZ dollars per kg of milk solids, unchanged from earlier guidance, with a range of 9.7-10.3 NZ dollars, the report said, adding it also issued an opening forecast for the 2025/26 season at 10 NZ dollars per kg of milk solids, within a wider indicative range of 8-11 NZ dollars due to ongoing global uncertainties.
This price injects around 15 billion NZ dollars into the New Zealand economy, most of it into rural communities, according to Fonterra.
The Co-op remains confident that focusing on high-return sales channels and its New Zealand milk advantage offers the best way to create long-term value for farmers and New Zealand, according to Hurrell. (1 NZ dollar equals 0.60 U.S. dollar) ■
