Fonterra forecasts its full-year earnings to be in the upper half of its previously announced estimates of 40 cents to 60 cents per share on the back of a well-contracted sales book.
It also expects farmgate milk price to be at the midpoint of $10 per kgMS.
Fonterra noted it anticipates favourable weather conditions, which may increase its milk collections to up to 1510 million kgMS.
“Fonterra’s earnings and the forecast farmgate milk price have both benefitted from solid demand for our high value Ingredients products, and our sales book is well contracted for the season,” said Miles Hurrell, Fonterra CEO.
“Considering these factors, we expect to be in a position to pay a strong interim dividend.”
Earlier this week, Fonterra said it chose Mainland Group as the corporate name for its consumer business, which it seeks to divest or spin off via an IPO.
