Fonterra New Zealand has released interim results for FY2024 reporting net profit after tax jumped 23% to NZ$674m, driven by increased EBIT (+11%) and a dip in financing costs, down 43%. Fonterra reported a drop in earnings of NZ$383m for its Ingredients category offset by rising earnings in the foodservice channel (+NZ$203m) and consumer channel (+NZ$302m).

As a result, Fonterra narrowed its forecast farmgate milk price to NZ$7.50kgMS—NZ$8.10kgMS, maintaining a midpoint of NZ$7.80kgMS.

Fonterra’s reported significantly lower WMP production in FY23 and FY24 compared to previous years as the coop “mitigated global demand risk” by allocating milk away from WMP into higher value product streams with stable demand. Fonterra earnings from the Greater China region declined by NZ$21m, while foodservice earnings lifted NZ$87m due to higher sales for UHT cream and higher margins.

Fonterra CEO Miles Hurrell said the company continues to monitor potential volatility from geopolitical instability and global inflationary pressures.