Fonterra raised profits after tax 8% YOY to NZ$729m in the first half of FY2025 as operating profit jumped 16% to NZ$1.107bn. Earnings per share rose 10% to NZ44c per share and an interim dividend of NZ22c per share will also be paid. The farmgate milk price range for the current season was narrowed to NZ$9.70kgMS— NZ$10.30kgMS, retaining the midpoint at NZ$10kgMS. Forecast milk collections for FY2025 are 2.7% higher than the same time last year at 1,510m kg of milk solids.

Fonterra attributed a strong first half to optimised product mix. Foodservice sales rose 8.3% on a strong Q2, with operating profit for the category NZ$230m. This compares to a record operating profit of NZ$342m n FY24, however, on much lower input costs. Margins increased in the Consumer channel  and sales volumes were +8.3%, despite higher farmgate milk price. Sales in the Ingredients channel declined 3.9% with operating profit rising to NZ$696m, on better margins and improved product mix.