Fonterra posts $2.6b profit and $9.69 milk price after Mainland sale
Fonterra reported a $2.6 billion annual profit and confirmed a $9.69 milk price for farmers, aided by its $4.22 billion sale of consumer brands to Lactalis.
What happened
Fonterra reported a $2.6 billion after-tax profit for the year ending July 31, up 142 percent from the previous year's $1.07 billion. The dairy co-operative confirmed a $9.69 farmgate milk price per kilogram of milk solids, down from $10.16 in the prior year. The strong result reflects a $1.2 billion gain from the sale of its Mainland Group consumer brands to French company Lactalis in March, completed after shareholders received a $2 per share capital return in April. Fonterra's continuing business delivered $1.8 billion in underlying operating profit and a $1.2 billion profit after tax. CEO Richard Allen said the business had achieved its target to rebuild earnings to 2025 levels ahead of schedule, delivering growth in its ingredients and foodservice divisions despite weather events and geopolitical volatility. Fonterra will pay a final dividend of 33 cents per share, bringing the total for the year to 73 cents. For the new 2026/27 season starting in June, Fonterra revised its farmgate milk price forecast to $9.50 per kilogram of milk solids.
Why it matters
Fonterra reported a $3.4 billion operating profit boosted by the $1.2 billion gain from selling Mainland brands. Today's results confirm the company has now exceeded its profitability targets ahead of the three-year timeline it set when announcing the divestment strategy.
Follow the whole thread: Fonterra annual results 2026
Key facts
- $2.6 billion annual profit after tax, up 142% on prior year
- $9.69 farmgate milk price for 2025/26 financial year
- $4.22 billion sale of Mainland Group to Lactalis completed in March
- 73 cents total dividend for the year, up from 57 cents
- $9.50 milk price forecast for 2026/27 season
What happens next
Fonterra will begin the 2026/27 milk season in June and has forecast farmgate milk prices for that season at $9.50 per kilogram of milk solids.
Primary source: Fonterra annual results for the year ending 31 July 2026
Covered byStuffNewstalk ZBBusinessDeskinterest.co.nzNot covered byRNZNZ Herald1NewsOtago Daily TimesNewsroomThe Spinoff
Coverage across the news outlets we track, as at publication.
Where the outlets differ
Stuff leads with the cash return to farmers; Newstalk ZB emphasizes CEO commentary on strategy and economic benefit; interest.co.nz provides the most comprehensive financial detail including the consumer brand divestment impact and the underlying earnings breakdown; BusinessDesk focuses on leadership continuity under Peter McBride rather than the financial results themselves.
What outlets are saying
Stuff
Fonterra profit jumps to $2.6b as farmers share in nearly $20b cash return
Fonterra has posted a $2.6b annual profit, confirmed a $9.69 milk price and announced another $1b investment in South Island protein manufacturing.
Newstalk ZB
Richard Allen: Fonterra CEO on the company delivering a full-year profit of $2.6 billion
Fonterra's boss believes the dairy co-op remains in a strong position, following the sell-off of its consumer brands.
interest.co.nz
Fonterra’s profit jumps 142%
Dairy giant Fonterra is paying farmer shareholders $9.69 per kilogram of milk solids and a total dividend for the year of 73 cents after reporting a $2.6 billion after-tax profit
BusinessDesk
Peter McBride on Fonterra’s big year and his own future
Peter McBride has plenty to be happy about this year. Under his watch, Fonterra completed a chief executive transition , exited its consumer business and achieved its profitability target two years ahead of schedule.