Fonterra Shareholders (FSF) Q3 2025 TU earnings summary

Executive summary

• Q3 normalised profit after tax reached NZ$1,158 million, up 11% year-over-year, with normalised EPS at 70 cents, up 13%.

• Operating profit for Q3 was NZ$1,740 million, an increase of NZ$267 million compared to the same period last year.

• Strategic focus remains on high-performing Ingredients and Foodservice businesses, with ongoing divestment of global Consumer and associated businesses.

Financial highlights

• Return on capital for the rolling 12 months was 11%, down from 11.9% year-over-year but within the long-term target range of 10-12%.

• Interim dividend of 22 cents per share was paid during FY25.

• Full year forecast earnings range narrowed to 65-75 cents per share, at the upper end of previous guidance.

Outlook and guidance

• FY25 full year forecast earnings range is 65-75 cents per share, assuming flat Q4 earnings due to seasonality and higher input costs.

• 2024/25 season forecast Farmgate Milk Price is $10.00 per kgMS, with a range of $9.70-$10.30 and midpoint at $10.00.

• 2025/26 season opening Farmgate Milk Price is forecast at $10.00 per kgMS, within a wide range of $8.00-$11.00, reflecting market uncertainty.