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Fonterra Co-operative Group (FCG) investor relations material

Fonterra Co-operative Group Special Meeting 2025 summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Special Meeting 2025 summary29 Oct, 2025

Opening remarks and agenda

  • Meeting opened to consider the divestment of consumer and associated businesses, with voting procedures and quorum confirmed.

  • Agenda included Chair's address, CEO's strategic overview, Co-operative Council Chair's remarks, resolution on the sale, Q&A, and voting.

  • Introduction of board members, senior management, auditors, and council representatives present in person and virtually.

Board and executive committee updates

  • Board unanimously recommended supporting the proposed sale to Lek Delice after extensive engagement with shareholders.

  • Sale process was highly competitive, with Lek Delice's $4.22 billion offer exceeding independent valuations.

  • The divestment is expected to simplify the business, focus on B2B ingredients and food service, and accelerate innovation.

Strategic initiatives and plans

  • Focus will shift to global ingredients and food service businesses, leveraging competitive advantage and global reach.

  • Investments underway include an advanced protein plant and new UHT cream capacity, with further $1 billion planned over 3-4 years.

  • Post-divestment targets include 10%-12% average return on capital, maintaining high farmgate milk price, and a 60%-80% dividend payout policy.

Detail future $1B investment projects
Mitigate non-exclusive supply risk with Lactalis?
How to offset divestment earnings impact?
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Frequently asked questions

Fonterra Co-operative Group Limited, established in 2001 through the merger of New Zealand Dairy Group and Kiwi Co-operative Dairies, alongside the New Zealand Dairy Board, is a leading New Zealand multinational dairy co-operative. Fonterra's core operations involve the export of dairy products under the NZMP brand, with a significant portion of its New Zealand production being exported globally. The company also manages a fast-moving consumer goods division, Fonterra Brands, and operates in various international markets through subsidiaries and joint ventures. The company is headquartered in Auckland, New Zealand, and its shares are listed on the New Zealand Stock Exchange.

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