Fonterra’s profit rises 8% to $729 million

Fonterra reported a strong financial performance for the first half of its fiscal year. The dairy cooperative's profit reached $729 million, an 8 percent increase compared to the same period last year. The company's revenue grew by 14 percent during this time. Chief executive Miles Hurrell stated that Fonterra is in good shape, with improved milk collections and higher earnings. He highlighted that the forecast Farmgate Milk Price is set at $10 per kilo of milk solids. For the half-year, Fonterra's earnings per share were 44 cents. The company maintains its full-year guidance of earnings between 50 to 65 cents per share. Hurrell noted that milk collections are expected to rise by 2.7 percent compared to last year. The company's earnings were notably supported by performance in the Ingredients business. Although earnings in the Foodservice sector declined from last year's peak, there was growth in sales volume and margins in both Foodservice and Consumer segments. Fonterra is also investing in digital services, with plans to spend between $450 million and $500 million over six years. This financial year, annual spending on digital services is expected to peak at $130 million. Looking ahead, Hurrell emphasized the company's goal to sustain its performance momentum while continuing to implement its strategic plans.