Fonterra Co-operative Group has today (April 1) completed the sale of its global consumer and associated businesses, Mainland Group, to Lactalis.
Fonterra chair Peter McBride said: “With the divestment complete, Fonterra can return capital to its owners and focus on growing further through its core business as a New Zealand farmer-owned global B2B dairy provider.”
CEO Miles Hurrell said: “Through our high performing ingredients and foodservice businesses, we sell innovative dairy products to customers globally under our NZMP (New Zealand Milk Products) and Anchor Food Professionals brands.
“We can now focus our resources, R&D spend, and farmers’ capital on continuing to grow these businesses, which generate the greatest return for farmers’ milk.”
Hurrell added that the completion of the sale also “signals the start of our long-term partnership with Lactalis”.
“Lactalis becomes one of our most significant ingredients customers, as we continue to supply milk and other products to the divested businesses,” he said.
Now the sale is completed, Fonterra will return NZ$3.2 billion of divestment proceeds to farmer shareholders and unit holders via a NZ$2.00 per share capital return.
As is standard practice, the NZX has approved a three-day administrative trading halt in respect of Fonterra’s shares and Fonterra Shareholders’ Fund units listed on the NZX Main Board.
This is to ensure all trades have settled before the record date and to allow time to update Fonterra’s share register.
Financial outlook
Fonterra’s 2026 financial year (FY26) earnings guidance for continuing operations remains unchanged at 50-65 cents per share.
Fonterra continues to target earnings to return to FY25 levels by FY28, offsetting the Mainland Group divestment, through execution of its strategy.
Last month, Fonterra released half year interim results, showing “continued momentum” in its performance.
Fonterra has reported revenue of NZ$13.9 billion in the first half of the financial year, up by NZ$1.3 billion year-on-year.
