New Zealand · Delayed Price · Currency is NZD Fonterra Shareholders Fund Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 saw strong operational progress and returns above the 10%-12% target, aided by favorable stream returns. Guidance for next year anticipates performance near the midpoint if current conditions persist, with supply chain risks in the Middle East managed effectively.
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Strong half-year results driven by higher milk prices and robust segment performance, with Foodservice margins up and consumer profitability restored. Guidance midpoint was raised, but caution remains due to Middle East risks. ERP and capital programs are on track.
Fiscal Year 2025
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Strategy execution continues with focus on food service and ingredients, while China consumer is being restructured. CapEx will peak above $1B through 2027 before normalizing, and net debt is set to rise towards $2.6B by 2028. Key risks include US tariffs and narrowing hedging benefits.
Fiscal Year 2024
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The meeting highlighted strong FY24 financial results, a strategy shift toward Foodservice and ingredients, and the planned divestment of the consumer business. Key governance changes, increased dividends, and ongoing innovation were discussed, alongside challenges in milk supply and sustainability.
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Net earnings per share reached NZD 0.70, with a total dividend of NZD 0.55 and return on capital at 11.3%. FY 2025 guidance anticipates strong margins, a higher Farmgate Milk Price, and increased tax expense as tax losses are exhausted.