Fonterra Shareholders
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Fonterra Shareholders (FSF) investor relations material

Fonterra Shareholders H2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H2 2026 earnings summary24 Sep, 2026

Executive summary

  • FY26 delivered strong operational progress, record milk volumes, and the highest second-half shipments in a decade, with total cash returns of $19.6 billion to farmer owners and unit holders.

  • Achieved $27 billion in revenue and nearly $20 billion in cash returns, supported by favorable stream returns and robust B2B segment growth.

  • Completed the sale of Mainland Group, unlocking a $1.2 billion benefit and enabling a strategic shift to a market-led, B2B focus.

  • Underlying profit after tax increased to $1.2 billion (71c per share), up from $0.9 billion (54c per share) the prior year.

  • Management expects performance to track toward the midpoint of next year's guidance if current stream returns persist, with some reversion anticipated in the second half.

Financial highlights

  • Operating profit reached $3.4 billion, up 97.6% year-over-year, including a $1.2 billion benefit from the Mainland divestment; underlying operating profit (continuing operations) was $1.8 billion, up 23.6% year-over-year.

  • Profit after tax was $2.6 billion, up 142% compared to the prior year; earnings per share rose to 71 cents.

  • Revenue increased 4% year-over-year to $27.4 billion; gross margin improved to 16.1% from 15.8%.

  • Underlying return on capital rose to 14.2% from 11.7%, exceeding the targeted 10%-12% range.

  • Gearing ratio decreased to 20.8% from 23.9%; net debt/EBITDA improved to 0.7x.

Outlook and guidance

  • FY27 forecast Farmgate Milk Price range: $8.50–$10.50 per kgMS; forecast earnings range: 65–85c per share.

  • Organic milk programme expanding, with forecast organic milk price of $13.30–$15.30 per kgMS.

  • Capital investment expected to be $1.3–$1.6 billion per annum over the next three years.

  • Milk volume growth expected, with forecast collections slightly over 1.6 billion kgMS; El Niño drought risk may impact late-season supply.

  • Management reaffirmed the 10%-12% return on capital target as a sustainable long-term range, despite occasional outperformance.

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Frequently asked questions

Fonterra Shareholders Fund provides investors with an opportunity to participate in the financial performance of Fonterra Co-operative Group, a leading dairy company based in New Zealand. The fund is structured to allow public investors to gain economic exposure to Fonterra without requiring ownership of cooperative shares, giving access to dividends and capital gains from the cooperative’s dairy production and export activities. Fonterra is known for its range of dairy products, including milk powders, cheese, and nutritional products, with a significant focus on international markets. The fund is managed from Auckland, New Zealand, and its units are listed on both the New Zealand Stock Exchange (NZX) and the Australian Securities Exchange (ASX).