Fonterra has delivered a full-year profit of $2.6 billion in its financial results announced this morning.
The full-year operating profit of $3.4b was thanks in part to $1.2b from the sale of its Mainland brands to French dairy giant Lactalis.
Total revenue for Fonterra for the year was $27b, with nearly $20b in cash returns to New Zealand farmers.
The co-operative's return on capital was 14.2%, well above its previously stated target range of 10-12%.
The final Farmgate Milk Price for the 2025/26 season was $9.69 per kgMS.
The co-op also declared a final fully imputed dividend of 33 cents per share, bringing fully imputed total dividends for the year to 73 cents per share. This includes the 24 cent interim dividend and 16 cent special Mainland dividend paid in April.
Fonterra chief executive Richard Allen said the co-operative's disciplined approach to strategic execution has once again generated strong results.
"FY26 was a year of delivery. Our teams collected, processed and shipped near record volumes of milk, allocated products for the highest possible returns, and reliably delivered them to our customers right around the world."
"Despite some challenging conditions, including weather events and geopolitical volatility, we leveraged our full supply chain network and logistics partnerships to keep milk moving, achieving record shipping volumes and materially improving our delivery performance."
Fonterra chairman Peter McBride said the co-operative has continued building momentum and delivered at the top end of its performance expectations.
"Consistency is important to farmers and our shareholders. We're proud of the collective effort that's delivered another strong result, at the top end of our earnings guidance. The team hasn't missed a beat despite the Mainland divestment process and the significant change that followed.
"Richard's transition into the CEO role has been seamless and it's exciting to see the energy his team is putting into building off this strong position."
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