Fonterra Co-operative Group (FCG) Q3 2026 earnings summary

Executive summary

• FY26 YTD operating profit reached $1.8b, up $103m year-over-year, driven by strong Foodservice performance, discontinued operations gains, and strong Q3 shipment volumes.

• Profit after tax for FY26 YTD was $1,076m, down $6m from the prior year, mainly due to higher costs associated with the Mainland divestment; underlying profit after tax was $946m (57c per share).

• Underlying earnings per share rose to 57c from 53c year-over-year.

• Capital investment YTD was $612m, with a full-year forecast of $1b, supporting major capacity expansions.

• Strongest third quarter shipping in a decade.

Financial highlights

• Operating profit rose to $1,764m from $1,661m year-over-year.

• Earnings per share (EPS) was 65c, slightly down from 66c; underlying EPS rose to 57c from 53c.

• Gross profit increased by $128m, with higher in-market prices in both Ingredients and Foodservice.

• Discontinued operations contributed $283m, including Mainland Group performance and divestment costs.

• Season-to-date milk collections increased 4% year-over-year to 1,489m kgMS.

Outlook and guidance

• FY26 underlying earnings range increased and narrowed to 60–70 cents per share, up from 50–65 cents, reflecting high contract levels and supply chain resilience.

• 2025/26 season Farmgate Milk Price forecast narrowed to $9.60–$9.80 per kgMS; opening 2026/27 forecast set at $9.75 per kgMS within a range of $8.00–$11.00.

• Organic Milk Price for 2026/27 forecast at $14.00 per kgMS, within a range of $13.00–$15.00.

• Guidance reflects strong shipment volumes expected in Q4, but acknowledges ongoing geopolitical and inflationary risks.