Fonterra, the mammoth New Zealand dairy co-op said that it expects earnings for 2025 to be between 55-75 NZ$cent (29-39 €cent) per share. That is a 25% increase on the previously guided earnings for the year.

CEO Miles Hurrell says it’s pleasing to see the co-op delivering strong earnings performance alongside a $10.00/kgMS (€5.29/kgMS) forecast Farmgate Milk Price midpoint, which is a great outcome for farmer shareholders.

“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,” Hurrell said.

Fonterra is also starting a series of investor roadshow meetings as part of its divestment plan for its global consumer and associated businesses. The plan currently is to sell the business, to be known as Mainland Group to the stock market in an initial public offering (IPO).

According to the marketing materials published by Fonterra the consumer business had earnings before tax, interest and depreciation of approximately NZ$200m (€106m) on revenue of NZ$4.9bn (€2.6bn) in 2024.

The company has 15 manufacturing sites and sells products across 20 countries in southeast Asia and Oceanian.

Fonterra will release its FY25 interim results on 20 March 2025 and will confirm its interim dividend on that date.