Fonterra’s profit after tax fell to NZ$1.168bn in FY2024, down from NZ$1.6bn the year before. Earnings before interest and tax totalled NZ$1.56bn driven by stable earnings across its channels, Ingredients, Foodservice and Consumer, down from NZ$1,755m the year before. Continuing operation earnings per share fell to 70c, down from 75c in FY23. The final farmgate milk price was reduced to NZ$7.83kgMS, but includes a 55c dividend, taking the final farmgate milk price to NZ$8.38kgMS.

Fonterra Ingredients EBIT fell to NZ$898m in FY24, down from NZ$1.55bn in FY23 due to volatility in demand from key regions, including slowing sales into Greater China. Ingredients sales fell 4% in FY24. Fonterra’s Foodservice channel lifted volumes 3% with EBIT increasing NZ$138m in FY24 to NZ$463m on lower milk input costs, with SE Asian markets benefiting from higher in-market pricing. Consumer channel volumes lifted 6% with earnings totalling NZ$199m, up from a loss in FY23 of NZ$125m.  

Meanwhile, Fonterra has lifted its farmgate milk price forecast to a midpoint of NZ$9kgMS due to recent strong GDT prices and slowing milk supply in major milk producing regions. The range rose to NZ$8.25kgMS—NZ$9.75kgMS, up from NZ$7.75kgMS –NZ$9.25kgMS.

The coop expects to maintain strong margins in all three of its sales channels reflected in a stronger earnings guidance for FY25.