{"id":3754,"date":"2026-03-23T01:49:55","date_gmt":"2026-03-23T01:49:55","guid":{"rendered":"https:\/\/globalnewstoday.uk\/index.php\/2026\/03\/23\/nzs-fonterra-ups-annual-earnings-outlook-flags-potential-middle-east-disruptions-wnwn-fm\/"},"modified":"2026-03-23T01:49:55","modified_gmt":"2026-03-23T01:49:55","slug":"nzs-fonterra-ups-annual-earnings-outlook-flags-potential-middle-east-disruptions-wnwn-fm","status":"publish","type":"post","link":"https:\/\/globalnewstoday.uk\/index.php\/2026\/03\/23\/nzs-fonterra-ups-annual-earnings-outlook-flags-potential-middle-east-disruptions-wnwn-fm\/","title":{"rendered":"NZ\u2019s Fonterra ups annual earnings outlook, flags potential Middle East disruptions – WNWN-FM"},"content":{"rendered":"

By Roshan Thomas
March 23 (Reuters) \u2013 New Zealand\u2019s Fonterra Co-operative Group raised its full-year earnings outlook on Monday after posting a steady rise in half-year profit, while flagging potential impacts from the Middle East conflict \u200bon supply chains and costs.
The dairy producer said the conflict could \u200cincrease its inventory levels and costs in the second half of the year, while contributing to volatility in global commodity prices.
Shares of the firm were down 0.2% at NZ$6.21 in early trade.
Fonterra raised its full-year earnings guidance for continuing operations to 50\u201365 NZ cents per share \u200cfrom \u200ba prior range of 45\u201365 NZ cents.
The upgrade \u2060reflects improved global commodity prices \u2060as well as strong underlying margins and cost control, the company said.
Fonterra declared an interim dividend of 24 NZ cents per share, up from 22 NZ cents a year earlier, and confirmed a special Mainland dividend of \u200b16 cents per share, representing 100% of the unit\u2019s fiscal 2026 earnings while under its ownership.
The world\u2019s biggest dairy exporter\u2019s reported profit after tax was \u2060NZ$750 million ($436.05 million) for the six months ended \u2060January 31, up 3% compared to NZ$729 million a year \u200bearlier.
Fonterra said performance was driven by growth in higher-value segments, with its ingredients \u200bbusiness channel delivering an 11% return on capital and its food \u200cservice channel 12.6%, supported by strength in its protein portfolio and improved pricing.
\u201cThe company looks to be benefiting from solid demand conditions and good execution, while the Middle East remains an important watchpoint rather than something that has derailed the \u2060story,\u201d said Jeremy Sullivan of advisory firm Hamilton Hindin Greene.
The company also raised its annual forecast range for the farmgate milk price, the price it pays to farmers \u2060for milk, to NZ$9.40-NZ$10.00 \u200cper kilogram of milk solids, from prior expectations of \u2060NZ$9.20-NZ$9.80 per kgMS.
Chief Executive Miles Hurrell said strong milk flows, \u200bincluding \u200crecord volumes from New Zealand\u2019s South Island, along with adverse \u200bweather, had \u2060pressured operations, but the company was able to manage the impact.
Fonterra had agreed to divest its global consumer and related businesses to French dairy major Lactalis, with the deal slated to complete by the end of March 2026.
($1 = 1.7200 New Zealand dollars)
(Reporting by Roshan Thomas and Jasmeen Ara Shaikh in Bengaluru; Editing by Mark \u200bPorter and Chris Reese)
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