The after tax profit was NZ$1.1 billion, equivalent to earnings per share of 65¢.
The group, which includes its Australian business, reported revenue of NZ$26 billion and delivered NZ$16.2 billion in total cash returns to shareholders.
The final farm gate milk price for the 2024-25 season was $NZ10.16/kg MS, equating to NZ$15.3 billion in milk payments to New Zealand farmers, up NZ$3.8 billion on last year.
The group also announced a full year dividend of 57¢ fully imputed, and at the upper end of its dividend policy, equating to NZ$916 million of cash to shareholders and unit holders. This is comprised of a 22¢ interim dividend and 35¢ final dividend.
Chief executive officer Miles Hurrell said FY25 was one of the co-op’s strongest years yet in terms of shareholder returns.
“We continue to see good demand from global customers for our high-quality products made from New Zealand farmers’ milk and this is driving returns through both the farm gate milk price and dividends,” Mr Hurrell said.
“Our vision is to be the source of the world’s most valued dairy.
“Our strategy is designed to grow end-to-end value for farmers by focusing on being a B2B dairy nutrition provider, working closely with customers through our high-performing Ingredients and Foodservice channels.
“During the year, we’ve taken important steps towards this goal, including running a robust divestment process for global Consumer and associated businesses.
“This resulted in an agreement to sell the businesses to Lactalis for NZ$4.22 billion, subject to approvals.
“We’re also positioning the co-op to deliver further value through our Foodservice and Ingredients businesses, including continuing to invest in new manufacturing capability to meet growing customer demand for our high-value products.
“We have a pipeline of potential growth investments we’re assessing, with plans to invest up to NZ$1 billion over the next three to four years in projects to generate further value and drive operational cost efficiencies.”
Mr Hurrell said in line with its strategy to focus on its Ingredients and Foodservice businesses, during the financial year, Fonterra undertook a dual-track divestment process for its global Consumer and associated businesses.
The company is selling the Oceania division, which includes Australian operations, to Lactalis.
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