Fonterra Co-operative Group has raised its full-year earnings guidance, reflecting positive contributions from its consumer channel – the division it is about to spin off.
The dairy co-operative now estimates earnings to range from 55 cents to 75 cents per share, up from the previous forecast of 40 cents to 60 cents per share.
“This upgrade reflects the underlying strength of our core Ingredients business and the resilience in our consumer channel, which is contributing to a robust result for businesses in the divestment perimeter,” said Miles Hurrell, Fonterra CEO.
“Our consumer channel has shown good volume and margin growth while recovering the higher farmgate milk price this season.”
Earlier, Fonterra said it expects farmgate milk price to be at the midpoint of $10 per kgMS, while noting it anticipates favourable weather conditions, which may increase its milk collections to up to 1510 million kgMS.
