��һ�ǿ�����

Fonterra has reported an 8% lift in first-half net profit to $729 million, increased its interim dividend and narrowed its milk price forecast for this season. 

The co-op’s operating profit rose by 16% to $1.1 billion. 

Fonterra announced a 22 cents per share dividend, compared with 15c in the previous comparable period. 

For the current season, the forecast farmgate milk price range narrowed from $9.50-$10.50 per kg of milk solids to $9.70-$10.30, with a $10.00/kg mid-point. 

Chief executive Miles Hurrell says the co-op was focusing on value while achieving the highest possible milk price. 

“At the same time, we’re looking ahead as we implement our strategy and continue to invest for the future,” he said. 

“We have commenced projects to unlock manufacturing production capacity for our Ingredients and Foodservice channels, with site works now under way at Studholme for high-value protein capacity and at Edendale for a new UHT cream plant.” 

The co-op maintained its full-year forecast earnings range at 55-75 cents per share. 

Fonterra’s Ingredients business was a highlight over the half - sales volume fell by 3.9% but operating profit up by $229m to $696m, reflecting better margins and improved product mix. 

The Foodservice channel saw sales volume growth of 8.3%, with Q2 gross margins significantly up on Q1 as pricing adjusted to the higher milk price. 

Foodservice operating profit for the half was a healthy $230m, compared to the record high of $342m in FY24 when input costs were much lower. 

The Consumer channel saw good sales volumes, up 8.5%, and margin growth, despite the higher farmgate milk price, with operating profit largely flat on the prior period at $173m. 

Earlier this month, the dairy giant increased its 2025 full-year earnings guidance from 40-60 cents per share to 55-75 cents per share, just as its “roadshow” for the potential sale of its consumer business got under way. 

The entity would be known as Mainland Group if Fonterra proceeds with an IPO. 

An information pack included indicative pro-forma historical financial information up to 2024 and reflected a more refined view of the components of the Mainland Group business compared to previous financial disclosures by Fonterra. 

Meanwhile, roadshow documents put the 2024 earnings before interest and tax for the “in scope” assets for sale at $200m down compared with $282m in materials released at last September’s financial result. 

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.