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Highlights

  • Fonterra reported NZD 729 million profit after tax and earnings per share of 44 cents per share in 1HFY25.
  • The ingredients segment’s operating profit increased by NZD 229 million to NZD 696 million, driven by improved margins and product mix.
  • IT & Digital transformation project budgeted at NZD 450–500 million, peaking at NZD 130 million in FY25.

Fonterra Co-operative Group (NZX:FCG) is a New Zealand-based dairy cooperative owned by about 10,000 farmers. It’s one of the world’s largest dairy exporters, producing milk powders, butter, cheese, and specialty ingredients for global markets.

Fonterra reported a profit after tax of NZD 729 million for the first half of the financial year 2025 (1HFY25), with earnings of 44 cents per share. FCG’s operating profit rose to NZD 1,107 million, up 16% YoY.

During the reported period, the ingredients segment was a highlight with NZD 229 million increase in operating profit to NZD 696 million, supported by better margins and product mix. Meanwhile, Foodservice posted a NZD 230 million profit, down from FY24’s record amid higher input costs. The Consumer channel saw 8.5% increase in sales volume, despite the higher Farmgate Milk Price

The company announced an interim dividend of 22 cents per share.

Business Update

In April 2025, the company informed that New Zealand and US monthly production increased along with increase in New Zealand monthly exports. Meanwhile, in Asia and China, monthly imports increased.

Fonterra reported New Zealand milk collections of 134.9 million kilograms of milk solids (kgMS) for March, marking a 0.4% increase compared to the same month last year. Season-to-date collections in New Zealand have reached 1,316.8 million kgMS, which is 2.6% higher than the same period last season.

In Australia, Fonterra collected 8.7 million kgMS in March, representing a 2.0% rise year-on-year. The season-to-date total now stands at 84.5 million kgMS, up 1.4% compared to last season.

Company Outlook

Fonterra has recently raised its FY25 full-year forecast earnings range to 55–75 cents per share, reflecting resilience in the consumer channel.

Top 10 Shareholders of FCG

The top ten shareholders of FCG own around 7.88% of the total holdings. FSF Management Company Ltd and Premier Dairies Ltd. have maximum ownership in the company of around 6.94% and 0.13%, respectively.

Share performance of FCG

FCG shares closed 0.42% lower at NZD 4.73 pe share on 22 May 2025. FCG share price has recorded a rise of over 59% in a year and has jumped by almost 5.58%in the last six months.

52-week high of FCG is NZD 5.00, recorded on 25 March 2025 and 52-week low is NZD 2.53, recorded on 31 May 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 22 May 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.