Fonterra reports revenue of US$15.3B in FY26

NEW ZEALAND – Fonterra Co-operative Group Ltd has reported US$15.33 billion (NZD$27 billion) in revenue and nearly US$11.35 billion (NZD$20 billion) in cash returns to New Zealand farmer owners and unit holders in its FY26 annual results.

Total Group operating profit was US$1.93 billion (NZD$3.4 billion), up 97.6% on the prior year, including a US$681.1 million (NZD$1.2 billion) Mainland divestment benefit, while Profit after tax was US$1.48 billion (NZD$2.6 billion), up 142%.

The final Farmgate Milk Price for the 2025/26 season was $9.69 per kgMS. The Co-op also declared a final fully imputed dividend of 33 cents per share, bringing fully imputed total dividends for the year to 73 cents per share.

Fonterra Chairman Peter McBride said the Co-operative has continued building momentum and delivered at the top end of its performance expectations. 

“Consistency is important to farmers and our shareholders. We’re proud of the collective effort that’s delivered another strong result, at the top end of our earnings guidance. The team hasn’t missed a beat despite the Mainland divestment process and the significant change that followed. Richard’s transition into the CEO role has been seamless and it’s exciting to see the energy his team is putting into building off this strong position.” 

Fonterra CEO Richard Allen said the Co-operative’s disciplined approach to strategic execution has once again generated strong results.  

He said Fonterra’s strategy to create value for farmers through disciplined capital choices, operational efficiencies, innovation and a customer focus is delivering results and will continue to guide its new era as a B2B Co-op.

The company confirmed the planned expansion of its organic milk business into the South Island will continue, with a recruitment drive for more organic farmers across the country to meet growing demand, following a record organic milk price of $14.13 per kgMS.

Outlook 

Looking ahead, the company is planning for another season of strong milk supply. However, they are also well prepared for an El Niño weather pattern should it eventuate.

The Co-operative is forecasting milk collections for the 2026/27 season to be just above 1.6 billion kgMS, and a Farmgate Milk Price of $9.50 per kgMS with a range of $8.50 – $10.50 per kgMS. 

Having reached the target for earnings to return to FY25 levels, Fonterra will no longer report on that target and will revert to its prior practice of forecasting earnings for the relevant financial year. 

Accordingly, the Co-operative’s forecast earnings range for FY27 is 65-85 cents per share.

This improving outlook reflects continued delivery from our B2B businesses, as they continue to grow high-value demand across our markets. Geopolitical volatility remains and with only two months complete, previous seasons tell us that things can always change. 

To receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world, SUBSCRIBE HERE.