Fonterra reports $3.4 billion operating profit following sale of Mainland brands
Fonterra reported a strong full-year operating profit of $3.4 billion, bolstered by the sale of its Mainland brands to Lactalis. The dairy co-operative also announced a final dividend for farmers and noted record shipping volumes despite global logistical challenges.
Why it matters
As a major global dairy exporter, Fonterra's financial health significantly impacts the New Zealand agricultural economy and global dairy supply chains.
Fonterra has delivered a full-year profit of $2.6 billion in its financial results announced this morning .
The full-year operating profit of $3.4b was thanks in part to $1.2b from the sale of its Mainland brands to French dairy giant Lactalis.
Total revenue for Fonterra for the year was $27b, with nearly $20b in cash returns to New Zealand farmers.
The co-operative's return on capital was 14.2 percent, well above its previously stated target range of 10-12 percent.
The final Farmgate Milk Price for the 2025/26 season was $9.69 per kgMS.
The co-op also declared a final fully imputed dividend of 33 cents per share, bringing fully imputed total dividends for the year to 73 cents per share. This includes the 24 cent interim dividend and 16 cent special Mainland dividend paid in April.
Fonterra forecasts payout will drop by up to 50 cents a kg
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