Business
Fonterra operative : Business Update Media Release FY26 Q3 (sustained performance in q3 as fonterra executes on strategy announces 2026 27 farmgate milk price.html)
Fonterra operative : Business Update Media Release FY26 Q3 (sustained performance in q3 as fonterra executes on strategy announces 2026 27 farmgate milk
About this update from Fonterra Co-operative Group Limited
[{"type":"text","content":"\n \n Fonterra has today released its FY26 Q3 business update, demonstrating sustained performance and progress on the Co-op's strategy, with year to date Total Group operating profit of $1.8 billion, up $103 million on this time last year.\n \n \n The Co-operative has lifted and narrowed its full year forecast earnings range to 60-70 cents per share, due to confidence in the Co-op's contracted sales position for FY26 and our ability to navigate ongoing supply chain disruption.\n \n \n The forecast Farmgate Milk Price midpoint for the current season is unchanged at $9.70 per kgMS, with the range narrowing to $9.60-$9.80 per kgMS.\n \n \n The Co-operative has also announced an opening forecast Farmgate Milk Price for the 2026/27 season of $9.75 with a range of $8.00-$11.00 per kgMS to reflect potential impacts across the season from ongoing geopolitical risks and inflationary pressures.\n \n \n CEO Richard Allen says, \"Today, we've delivered another strong result. Milk production is up considerably this season, and despite disruption in global supply chains, our sales book is well contracted and our shipping volumes are strong, with the highest third quarter shipment volumes in a decade.\n \n \n \"As we look ahead to next season, we expect milk collections to remain high, in line with this season. Our in-market sales teams are anticipating solid demand from across the regions despite potential volatility, and this is reflected in our opening forecast range.\"\n Business performance\n A disciplined focus on strategy has driven a Total Group year to date operating profit of $1.8 billion, up from $1.7 billion the prior year, and profit after tax of $1.1 billion, equivalent to 65 cents per share.\n \n \n Adjusting for Mainland's result to reflect the Co-operative's underlying business, the Co-op delivered $946 million profit after tax, equivalent to earnings per share of 57 cents, up from 53 cents this time last year.\n \n \n The Ingredients business benefited from ongoing protein demand in the US and Europe, while Foodservice continued to achieve both volume and margin growth.\n Strategy execution\n Mr Allen says the Co-op is committed to delivering on its strategy and growing value for farmer owners as a global B2B dairy provider. \n \n \n \"During the quarter, we completed the sale of Mainland Group and returned $3.2 billion to s...