Fonterra reports $3.4 billion operating profit on Mainland sale

What happened

Fonterra has delivered a full-year profit of $2.6 billion, with an operating profit of $3.4 billion that includes $1.2 billion from the sale of its Mainland brands to French dairy giant Lactalis. Underlying profit, stripping out the sale, was up nearly 24 percent to $1.8 billion. Total revenue was $27 billion, with nearly $20 billion in cash returns to New Zealand farmers. The co-operative's return on capital reached 14.2 percent, well above its target range of 10–12 percent. The final Farmgate Milk Price for the 2025/26 season was $9.69 per kilogram of milk solids. Fonterra declared a final dividend of 33 cents per share, bringing fully imputed total dividends for the year to 73 cents per share. Chief executive Richard Allen highlighted the co-operative's ability to handle near-record milk volumes and maintain reliable delivery despite challenging weather and geopolitical volatility. Chairman Peter McBride said the results reflected strong collective effort and confirmed Richard Allen's seamless transition into the CEO role.

Why it matters

Fonterra's strong annual profit of $2.6 billion announced on 24 September helped support the New Zealand sharemarket, though gains were limited by rising oil prices and bond yields. This result confirms the dairy co-operative's recovery trajectory with underlying profit growth of 24 percent when the Mainland sale is excluded.

Follow the whole thread: Fonterra annual results 2026

Key facts

• Full-year operating profit $3.4 billion
• Full-year profit $2.6 billion
• $1.2 billion from Mainland sale to Lactalis
• Underlying profit up 24 percent to $1.8 billion
• Farmgate Milk Price $9.69 per kgMS for 2025/26 season

Primary source: Fonterra financial results for year ending 31 July 2026

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