Dairy co-operative Fonterra reported a strong profit exceeding $1 billion for the year, though lower than last year’s record due to easing tailwinds like business divestments and high prices.
CEO Miles Hurrell noted that the company maintained momentum with robust demand for foodservice and value-added ingredients. Increased sales volumes and higher margins contributed to earnings, while cost-cutting helped offset inflationary pressures.
Fonterra raised its forecast farmgate milk price and is exploring the potential sale of its consumer brands. A revised business strategy with a focus on maximizing value for farmer shareholders is set to be unveiled next week.
