Fonterra reported higher revenue in financial year 2025 at NZ$26bn, up 15% YOY with profit after tax down 4% to NZ$1.079bn. Profit after tax was down due to an increase in tax expense. Operating profit increased to NZ$1.7bn, up from NZ$1.5bn the year prior. Total cash returns to shareholders jumped 30.6% to NZ$16.2bn and a fully imputed full-year dividend of NZ57c, comprising a NZ22c interim and NZ35c final dividend, sits at the upper end of Fonterra’s dividend policy.

In New Zealand, the final 2024/25 farmgate price was confirmed at NZ$10.16kgMS, totalling NZ$15.3bn in milk payments to farmers, up NZ$3.8bn on the year prior. Milk collections for the season totalled 1,509m kgMS, up 2.6% on the season prior and the largest season total since 2021/22. Fonterra adjusted its milk solids allocation, with 76% directed through the ingredients channel—down from 78% the previous year. Within this, allocations to WMP declined to 34.1% from 34.5% the year before and  SMP fell from 9.1% to 8.1%. The cream channel saw a modest rise to 25.0% from 24.8%, while the cheese stream recorded the largest increase, climbing from 11.3% to 12.5% amid stronger global demand. Allocation to other proteins also grew to 7.2%, supported by rising US demand for products like MPC 85 used in ready-to-drink protein beverages.

Looking ahead, Fonterra forecasts milk collections to grow to 1,525m kgMS in 2025/26, up from previously forecast 1,490m kgMS. The forecast farmgate milk price for 2025/26 remains in the range of NZ$9.00kgMS—NZ$11.00kgMS, with a midpoint on NZ$10.00kgMS.