Fonterra Co-operative Group's FY24 Financial Performance

Fonterra Co-operative Group Limited (ASX:FSF) has reported a strong full-year financial performance for FY24, with a final 2023/24 season Farmgate Milk Price of $7.83 per kgMS and a total dividend of 55 cents per share. The company's profit after tax from continuing operations was $1,168 million, equivalent to 70 cents per share. Additionally, the Co-op is exploring divestment options for its global Consumer business, as well as Fonterra Oceania and Sri Lanka.

Executive Commentary on FY24 Performance and Strategic Direction

The company's performance in FY24 reflects our commitment to delivering value to our shareholders and unit holders. We are pleased with the strong results, including the robust Farmgate Milk Price and the special dividend, driven by our earnings performance. The exploration of divestment options aligns with our strategic review to reinforce our strengths and generate more value for our farmers. We are well placed to consider the next phase of our strategy to grow long-term value for the Co-op, focusing on innovation, sustainability, and customer partnerships.

Outlook and Corporate Strategy

Fonterra Co-operative Group's strong FY24 performance, with a Farmgate Milk Price of $7.83 per kgMS and a total dividend of 55 cents per share, positions the company for continued growth. The exploration of divestment options for its global Consumer business and other entities reflects the company's strategic focus on reinforcing its strengths and generating more value for its farmers. The outlook for dairy trade is positive, with strong demand from key importing regions, and the company has forecast a Farmgate Milk Price of $8.25-$9.75 per kgMS for FY25. Fonterra's commitment to innovation, sustainability, and customer partnerships underpins its corporate strategy, aiming to deliver long-term value for its stakeholders.