New Zealand · Delayed Price · Currency is NZD Fonterra Co-operative Group Earnings Call Transcripts
Fiscal Year 2026
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Strong half-year results were driven by higher milk prices, robust Foodservice margins, and improved milk supply. Earnings guidance was raised, with performance tracking toward the top end of the range, though Middle East risks remain a watchpoint.
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A special meeting focused on approving a NZ$3.2 billion capital return following the sale of Mainland Group. Shareholders discussed the scheme of arrangement, with voting conducted online and results to be announced later.
Fiscal Year 2025
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Strong financial results were reported, with a record milk price and dividend, and a major asset divestment approved by shareholders. Strategic investments and governance changes were highlighted, while key risks included global market pressures and sustainability targets.
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Shareholders met to vote on the $4.22 billion divestment of consumer businesses to Lek Delice, with the board and council strongly supporting the sale after extensive consultation. The strategy focuses on B2B ingredients and food service, with significant new investments planned.
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Solid results were delivered with a clear path to $250 million EBIT growth by FY2028, driven equally by cost reductions and business mix. CapEx will peak above $1 billion before normalizing, and net debt is set to rise gradually. Food service margins and U.S. tariffs are key risks.
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Strong first half FY25 results with profit after tax up 8% to NZD 729 million and a fully imputed interim dividend. Ingredients channel drove profit growth, while food service and consumer channels improved in Q2 but remain down year-over-year. Guidance maintained amid global volatility.
Fiscal Year 2024
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The meeting highlighted strong FY24 financial results, a strategy shift toward food service and ingredients, and the planned divestment of the Consumer business. Shareholders approved governance and remuneration changes, discussed sustainability, and addressed challenges like milk supply and future farmer engagement.
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Strong annual results with robust EBIT growth, resilient Foodservice and Consumer segments, and a focus on value-accretive investments. IT transformation and tax changes will impact FY 2025, while China Foodservice demand remains a bright spot.