Fonterra lifts earnings outlook on strong consumer operations
Earnings outlook increased to 55-75 New Zealand cents per share
11 March 2025
1 minute read
By: New Zealand's Fonterra on Monday said it expects higher annual earnings due to robust volume and margin growth at the dairy giant's consumer operations, a business it is looking to sell and later list through an initial public offering, reported Reuters.
Fonterra, one of the country's biggest listed firms, increased its full-year earnings outlook to 55-75 New Zealand cents per share from a previous estimate of 40-60 New Zealand cents.
In February, the firm said it would engage with the potential buyers of its global consumer businesses over the coming weeks and appointed a team to handle the initial public offering.
Auckland, New Zealand-based Fonterra in November last year outlined its plans to explore potential divestment options for its global consumer unit, Fonterra Oceania and Fonterra Sri Lanka, including a sale and an IPO.
"This upgrade reflects the underlying strength of our core ingredients business and the resilience in our consumer channel, which is contributing to a robust result for businesses in the divestment perimeter," said Fonterra CEO Miles Hurrell.
The company kept its midpoint forecast for Farmgate Milk Price at NZ$10 per kilogram of milk solids for the year. It had earlier said it was in a position to pay a strong dividend to its shareholders.
