This report is an updated version of the report published on 25^th August at 7:35 pm (GMT +12)

Fonterra Co-operative Group Limited (NZX: FCG)

Fonterra Co-operative Group Limited (NZX: FCG) is a dairy co-operative, owned and supplied by ~9,000 farming families in Aotearoa, NZ.

Recommendation Rationale – SELL at NZD 5.95 

• Recently, FCG announced that it has agreed the sale of its global Consumer and associated businesses to Lactalis for the consideration of $3.845 Bn. Also, FCG highlighted that the global Dairy Trade prices are strong, helping the $10.00 per kgMS forecast midpoint for the current season. The company stated that it’s still early in the season and the risk of volatility remains.
• The sale consists of Fonterra’s global Consumer business (excluding Greater China) and Consumer brands, the integrated Foodservice and Ingredients businesses in Oceania and Sri Lanka as well as the Middle East and Africa Foodservice business.
• FCG is exposed to the risks related to the volatility in demand from key importing regions, increased competition, etc.

FCG’s Daily Price Chart

FCG Daily Technical Chart, Data Source: REFINITIV

Given its current trading levels, recent rally in the share price, and risks associated, it is prudent to book profit at the current levels.

Hence, a ‘Sell’ rating has been provided on the stock at the closing price of NZD 5.95 per share, down by 0.83% as on 25 August 2025

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.