Fonterra reported a net profit after tax of $973 million, down 27 percent on the same period last year, with the prior period including Soprole performance and net gain on divestments. Photo: RNZ / YouTube
Fonterra has announced an opening 2024/25 season farmgate milk price forecast of $7.25 to $8.75 per kilogram of milk solids, with a midpoint of $8.00 per kg.
The co-operative also reported a net profit after tax of $973 million, down 27 percent on the same period last year, with the prior period including Soprole performance and net gain on divestments.
Continuing operations' profit after tax was $1,013 million up $20m, or 2 percent - or equivalent to 61c per share.
Chief executive Miles Hurrell said the strong result was driven by continued strong earnings across all three of the co-op's product channels.
"The food service and consumer channels in particular had a strong third quarter with a lift in earnings compared to the same time last year.
"As a result of this performance, we have lifted our forecast FY24 continuing operations' earnings range to 60-70 cents per share, up from 50-65 cents per share""
When it comes to the forecast milk price for the upcoming season Hurrell said while global dairy prices had lifted in recent months, looking ahead milk supply and demand dynamics remained finely balanced.
"China import volumes have not yet recovered to historic levels.
"Given the early point in the season, the uncertainty in the outlook and ongoing risk of volatility in global markets, we are starting the season with a cautious approach. Our opening forecast range is $7.25-$8.75 per kgMS with a midpoint of $8.00 per kgMS."
Fonterra has left the current season forecast farmgate milk price midpoint at $7.80
