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Highlights

  • FCG reported Q3FY25 normalised profit after tax of NZD 1,158 million, an increase from NZD 119 million in Q3FY24.
  • FCG to divest Consumer business, increasing focus on the high-performing Ingredients and Foodservice segments.
  • The company narrows FY25 earnings guidance to 65–75 cents per share from the earlier 55–75 cent range.

Fonterra Co-operative Group Limited (NZX:FCG) is a New Zealand-based, farmer-owned dairy co-operative made up of nearly 9,000 farming families and 20,000 global employees, focused on producing sustainable dairy ingredients, consumer goods, and foodservice solutions while supporting local communities through cooperative values.

In the third quarter of the financial year 2025 (Q3 FY25), FCG reported a normalised profit after tax of NZD 1,158 million, an increase of NZD 119 million compared to Q3 FY24, which equates to 70 cents per share, driven by the scale of the Ingredients channel, and growth in the volume of the Foodservice and Consumer segments. Operating profit for the period rose to NZD 1,740 million, up NZD 267 million from previous corresponding period.

The interim dividend declared for FY25 remains at 22 cents per share.

Business update

On 16 July 2025, Fonterra announced the appointment of Pat Duignan to its Milk Price Panel, following his nomination by Minister of Agriculture Todd McClay under the Dairy Industry Restructuring Act 2001 (DIRA). As required by DIRA, Fonterra must include two ministerial nominees on the Panel. Duignan replaces Ming Lim-Pollard and joins Professor Hamish Gow as the second current ministerial appointee.

Company outlook

Fonterra expects flat earnings in Q4 due to seasonal collection patterns, ongoing strategic investments in the ERP system and higher input prices for Consumer and Foodservice businesses.

The company stated that its rolling 12-month Return on Capital reached 11%, surpassing its FY25 target and aligning with its 10–12% long-term goal, prompting narrowing of its FY25 earnings guidance to 65–75 cents per share from the earlier 55–75 cent range.

Looking ahead, Fonterra continues to focus on its high-performing segments Ingredients and Foodservice while progressing plans to divest its global Consumer and associated businesses. The company stated that, after the divestment of its Consumer business, it will still be a Co-op with significant scale and reach and will have a diverse product mix that will address customers across more than 100 countries.

Share performance of FCG

FCG shares closed at NZD 4.730 per share on 24 July 2025. In a year, the stock price has surged by 68.91%, with a 3-month gain of 3.28% and a 6-month gain of 4.88%. However, it recorded a weekly decline of 0.42% and a 1-month loss of 0.84%.
The 52-week high for Fonterra is NZD 5.000, achieved on 25 March 2025, while the 52-week low is NZD 2.7907, recorded on 25 July 2024.

Resistance and support summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 24 July 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.