Fonterra lifts earnings and milk price forecasts
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The news: New Zealand dairy exporter Fonterra Co-operative Group has increased its forecast farmgate milk price and earnings guidance for FY24 after a strong start to the year.
The numbers: The forecast price midpoint for the season is up 25 NZ cents (23.42 cents) to NZD7.50 ($7.03) per kilogram of milk solids (kgMS), with the forecast range moving from NZD6.50-NZD8.00 per kgMS to NZD7.00-NZD8.00 per kgMS. Fonterra's year-to-date profit after tax is at NZD392 million, equivalent to 24 NZ cents per share, up 85% compared to this time last year.
The context: Fonterra CEO Miles Hurrell said the revised forecast reflects recent strengthening in demand for reference commodity products from key importing regions, including improvement in demand from China during the first quarter.
What they said: Hurrell said: 'It's still early in the year, with potential for further volatility in commodity prices, so we will continue to watch market dynamics closely and provide updates as needed."
The source: ASX announcement
