New Zealand's Fonterra FY26 profit more than doubles on foodservice strength

Fonterra-operative

23/09/2026 21:43

Overview
New Zealand dairy ingredients provider reported FY26 revenue up yr/yr to NZ$27.4 bln
FY26 net income rose 142% yr/yr to NZ$2.6 bln
Company announced NZ$1 bln investment in South Island protein manufacturing

Outlook
Fonterra forecasts FY27 underlying earnings of 65-85 cents per share
Company expects 2026/27 Farmgate Milk Price of NZ$9.50/kgMS, range NZ$8.50-NZ$10.50/kgMS
Fonterra sees 2026/27 Organic Milk Price at NZ$14.30/kgMS, range NZ$13.30-NZ$15.30/kgMS

Result Drivers
MAINLAND DIVESTMENT – Sale of Mainland Group generated a NZ$1.25 bln gain, lifting total profit after tax to NZ$2.61 bln from NZ$1.08 bln
FOODSERVICE MARGINS – Underlying operating profit rose NZ$266 mln to NZ$547 mln, driven by UHT cream and cream cheese pricing, lower input costs and lower operating costs
PROTEIN DEMAND – Ingredients operating profit rose NZ$85 mln to NZ$1.29 bln as strong protein demand lifted prices and volumes; European protein added NZ$67 mln
HIGHER MILK COLLECTIONS – Collections rose 4.1% to 1.571 bln kgMS, supported by favourable weather, improving asset utilisation and spreading fixed costs

Company press release: ID:nNZS7bqa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
 
NZ$27.43 bln
 
FY Net Income
 
NZ$2.61 bln
 
FY Dividend
 
NZ$0.73
 

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)