Fonterra announces strong Q3, sets 2025/26 milk price

Fonterra Co-operative Group Ltd announced a strong Q3 performance, with normalised profit after tax rising to NZ $1,158 million, an 11% increase, boosting normalised continuing earnings per share by 13% to 70 cents. As a result, the Co-op has narrowed its full-year forecast earnings range to 65-75 cents per share. The company set its opening forecast Farmgate Milk Price for the 2025/26 season at $10.00 per kgMS, within a wide range of $8.00-$11.00 per kgMS, driven by stable near-term market demand. The current season forecast remains unchanged at $9.70-$10.30 with a midpoint of $10.00 per kgMS. Fonterra is focusing on optimising its product mix, aiming for a Return on Capital of 10-12% and plans to target significant capital return to shareholders.