Fonterra Shareholders’ Fund (ASX:FSF) has updated its earnings forecast for the fiscal year 2025, predicting results in the upper half of its prior estimate of 40-60 cents per share.
The company has experienced a robust first half of the year and revised its Farmgate Milk Price midpoint forecast to $10.00 per kgMS for 2024/25.
Favourable weather conditions have bolstered Fonterra's milk collections, now expected to reach 1,510 million kgMS.
The positive projection follows strong pasture growth across much of New Zealand.
Fonterra plans to release its interim results on March 20.
"As we prepare our FY25 interim results for release on 20 March, we can see we’ve maintained the momentum from Q1. Further to this, good pasture growth across most of New Zealand to date has meant our forecast collections for the season are up," according to CEO Miles Hurrell.
"Considering these factors, we expect to be in a position to pay a strong interim dividend. Our revised dividend policy released in September 2024 is 60-80% of full-year earnings, with up to 50% of full-year dividend to be paid at interims," added Hurell.
Fonterra Shareholders' Fund provides investors an opportunity to invest in the performance of Fonterra Co-operative Group.