NZ’s Fonterra lifts annual milk price forecast, teases special dividend
#Fonterra #milk price forecast #special dividend #New Zealand #Lactalis #Mainland Group #favourable commodity prices #farmgate milk price #2025/2026
📌 Key Takeaways
- Fonterra lifted its 2025/2026 farmgate milk price forecast from NZ$8.50–NZ$9.50 to NZ$9.20–NZ$9.80 per kilogram of milk solids.
- The company will pay a special dividend of 14–18 New Zealand cents per share, funded by earnings from the Mainland Group, following its sale to Lactalis.
- The forecast increase reflects supportive global commodity prices and a robust sales pipeline.
- Fonterra’s core earnings outlook for fiscal 2026 remains unchanged at 45–65 New Zealand cents per share.
- The special dividend will be distributed after the completion of the sale to Lactalis in the first quarter of 2026.
📖 Full Retelling
New Zealand dairy cooperative Fonterra Co‑operative Group announced on February 20, 2026, that it has raised its 2025/2026 farmgate milk price forecast and will issue a special dividend, citing favourable global commodity prices, a strong sales book and the upcoming sale of its Mainland Group to French dairy giant Lactalis.
🏷️ Themes
Dairy industry, Commodity pricing, Corporate divestiture, Dividend policy, Financial markets
Entity Intersection Graph
No entity connections available yet for this article.
Original Source
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Gold largely flat as investors weigh geopolitical tensions, hawkish Fed minutes US said ready to begin war with Iran; Trump warns ’bad things will happen’ Berenberg sees more than 50% upside in this small-cap software stock Morgan Stanley identifies best gas stocks amid AI data center boom (South Africa Philippines Nigeria) NZ’s Fonterra lifts annual milk price forecast, teases special dividend By Reuters Stock Markets Published 02/19/2026, 03:26 PM Updated 02/19/2026, 03:31 PM NZ’s Fonterra lifts annual milk price forecast, teases special dividend 0 FCG 0.33% Feb 20 - New Zealand dairy giant Fonterra Co-operative Group lifted its milk price forecast range for the 2025/2026 season on Friday, and said it intends to declare a special dividend supported by earnings from its Mainland Group. The dairy producer raised its annual forecast range for farmgate milk price — the price it pays to farmers for milk — to NZ$9.20-NZ$9.80 per kilogram of milk solids , from prior expectations of NZ$8.50-NZ$9.50 per kgMS. The hike is based on the favourable global commodity prices and its strong sales book, the dairy cooperative said. "Following the declines at the end of 2025, prices have lifted in the last four Global Dairy Trade events," said Miles Hurrell, Fonterra’s chief executive officer. The company said that it intends to pay out a special dividend from the entire fiscal 2026 underlying earnings generated by Mainland Group, which was part of a NZ$4.22 billion ($2.52 billion) deal signed last year. Fonterra had agreed to divest its global consumer and associated businesses to French dairy major Lactalis. It expects the special dividend to be in the range of 14-18 New Zealand cents per share, with the payout expected following the completion of the sale to Lactalis in the first quarter of 2026. Fonterra left its earnings forecast from continuing operations for fiscal 2026 unchanged at 45-65 New Zealand cents per share. ($...
Read full article at source