Fonterra Shareholders (FSF) Q3 2025 TU earnings summary

Executive summary

• Q3 normalised profit after tax reached NZ$1,158 million, up 11% year-over-year.

• Normalised continuing EPS rose 13% to 70 cents per share.

• Strategic focus on Ingredients and Foodservice channels, with divestment of Consumer businesses underway.

• Strong shareholder returns, including a 22-cent interim dividend.

Financial highlights

• Operating profit for Q3 was NZ$1,740 million, up NZ$267 million from last year.

• Return on capital at 11%, down from 11.9% year-over-year but within long-term target range.

• FY25 full year forecast earnings narrowed to 65-75 cents per share, at the upper end of previous guidance.

• Farmgate Milk Price for 2024/25 and 2025/26 seasons set at $10.00 per kgMS.

Outlook and guidance

• FY25 year-end forecast earnings range tightened to 65-75 cents per share, assuming flat Q4 earnings.

• 2025/26 opening Farmgate Milk Price forecast at $10.00 per kgMS, within a wide range of $8.00-$11.00 per kgMS due to market uncertainties.

• Ongoing geopolitical uncertainty could impact future outcomes.