Fonterra Raises Annual Earnings Forecast, Flags Middle East Cost Pressures
Fonterra Raises Annual Earnings Forecast
New Zealand's dairy giant Fonterra has raised its annual earnings forecast after logging its highest shipment volumes in a decade. The company now expects 2026 earnings per share of 60-70 NZ cents, up from the previous forecast of 50-65 NZ cents.
Middle East Conflict Impact
CEO Richard Allen cautioned that the Middle East conflict is pushing up costs and disrupting supply chains. The company highlighted volatility in global commodity prices and rising shipping costs.
Strong Milk Production and Export Demand
Fonterra posted a nine-month total group operating profit of NZ$1.76 billion, driven by a surge in milk production and robust export demand. Shipment volumes reached their highest third-quarter level in a decade.
Farmgate Milk Price Forecast Narrowed
The company narrowed its annual forecast range for the farmgate milk price to NZ$9.60-NZ$9.80 per kg of milk solids, from NZ$9.40-NZ$10.00 previously.
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