Strong results for Fonterra, higher milk price forecast

Fonterra has once again delivered a strong result for the first half of the 2025/26 financial year. Revenue and profit have improved, and the expected payment to the member dairy farmers is increasing again. The results presented now are not yet those of the 'new' Fonterra but reflect the last half year of the company including the Mainland Group. The transfer of that to Lactalis will officially take place at the end of March. For the member dairy farmers, the news is good, as the milk price expectation is being raised again by 20 cents, from NZ $9.50 per kilo milksolids to NZ $9.70 per kilo. The expectation for the ordinary dividend is now set at 45 cents per share, which is a bit disappointing, since a dividend of 45 to 65 cents had previously been anticipated. The dividend from the sale of the Mainland Group comes out to 16 cents, which is exactly the midpoint between the 14 and 18 cents that had been mentioned earlier. For as long as it has lasted, Fonterra has benefited from the Mainland Group in the meantime. It made a good contribution to the result. Revenue increased by NZ $1.3 billion compared to the first half of the previous financial year, reaching NZ $13.9 billion in the first half of the current financial year. Operating profit rose from NZ $1,107 million to NZ $1,231 million. Net profit increased from NZ $729 million to NZ $750 million.