Fonterra reports nearly doubled operating profit for 2025/26 fiscal year

Fonterra has reported a significant increase in operating profit for the 2025/26 fiscal year, which rose 97.6% year-on-year to 3.4 billion NZD. Total revenue reached approximately 27 billion NZD. A substantial portion of this growth—over one-third—was driven by a one-time 1.2 billion NZD operating profit from the sale of the Mainland Group consumer business to the French group Lactalis.

Excluding the one-time sale, profit from continuing operations grew by 23.6% to 1.8 billion NZD, led primarily by the dairy ingredients segment. This performance was attributed to strong global demand for milk protein, favorable pricing, and improved product offerings. Consequently, Fonterra has raised its milk price forecast for suppliers for the 2026/27 season.

The cooperative is also directing 946 million NZD toward investments in the 2026 fiscal year. These funds are earmarked for expanding functional protein segments, foodservice products, and the decarbonization of processing plants. Key projects include the Studholme protein center and new cream and butter production facilities in Edendale and Clandeboye to meet rising global demand for high-margin dairy ingredients.