Dairy cooperative, Fonterra, is poised for a strong financial year ahead.
It reported a 50 per cent increase in the forecast of ‘Farmgate Milk Price midpoint’ for the 2024/25 season as well as an uplift in the FY25 ‘Advance Rate Schedule’.
These announcements, according Fonterra CEO, Miles Hurrell, reflect the recent lift in global dairy trade prices and the strength of the company’s balance sheet.
“Since announcing our opening FY25 season forecast Farmgate Milk Price in May, GDT prices have improved,” said Hurrell.
“We’ve reflected this in our revised forecast range with our midpoint lifting 50 cents to $8.50 per kgMS.”
Hurrell added the adjustments will see farmers paid 10 per cent more of the FY25 forecast Farmgate Milk Price from December paid January compared to other seasons which should assist farmers with on-farm cashflow.
Fonterra has also advised its FY24 earnings from continuing operations are forecast to be at the top of the announced range of 60-70 cents per share.
“As we look to close out the books for the year, it’s become clear that we have maintained strong performance across FY24,” said Hurrell.
“We’re indicating we expect our earnings to be at the top end of our forecast range and this puts us on track for a strong full year dividend.”
Fonterra will release its final FY24 earnings and full year dividend when it releases its financial results in September.
In other news, Meredith Dairy specified a custom refrigerated transport build from Scully RSV.
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