Fonterra delivers strong FY25 interim earnings and dividend

Fonterra Co-operative Group Limited


Fonterra Co-operative Group Page 1

Results for Announcement to the Market
Results for announcement to the market
Name of issuer
Fonterra Co-operative Group Limited
Reporting Period 6 months to 31 January 2025
Previous Reporting Period 6 months to 31 January 2024
Currency NZD

Amount (000s) Percentage change
Revenue from continuing operations $12,592,000 14%
Total Revenue $12,592,000 12%
Net profit from continuing operations $721,000 1%
Total net profit $729,000 8%
Interim Dividend
Amount per Quoted Equity Security $0.2200
Imputed amount per Quoted Equity Security $0.0856
Record Date 27 March 2025
Dividend Payment Date 8 April 2025
Current period Prior comparable period
Net tangible assets per Quoted Equity
Security
$3.87 $3.89
A brief explanation of any of the figures
above necessary to enable the figures to be
understood
Please refer to the unaudited interim financial statements
for further explanation
Authority for this announcement
Name of person authorised to make this
announcement
Anya Wicks
Contact person for this announcement Anya Wicks
Contact phone number (09) 374 9341
Contact email address Anya.wicks@fonterra.com
Date of release through MAP 20/03/2025
Unaudited interim financial statements accompany this announcement.

---

20 March 2025

Fonterra’s momentum delivers strong FY25 interim earnings and dividend

• Operating profit: NZ $1,107 million, up 16%
• Profit after tax: NZ $729 million, up 8% 
• Earnings per share: 44 cents per share, up 10%
• Return on capital: 10.2% down from 13.4%
• Interim dividend, fully imputed: 22 cents per share
• Forecast Farmgate Milk Price range narrows: NZ $9.70 - $10.30 per kgMS
• Forecast milk collections: 1,510 million kgMS, up 2.7%  
• FY25 full year forecast earnings range: 55-75 cents per share

Fonterra Co-operative Group Ltd today announced a positive FY25 interim result as the Co-op continues
to make good progress on implementing its strategy.

Fonterra has reported a half year Profit after Tax of $729 million, earnings of 44 cents per share and a
decision to pay an interim dividend of 22 cents per share, alongside a 2024/25 season forecast Farmgate
Milk Price midpoint of $10.00 per kgMS.

Fonterra CEO Miles Hurrell says it’s pleasing to be able to deliver these results for farmer shareholders
and unit holders.

“We’re focusing on driving value which includes delivering strong financial performance while achieving
the highest sustainable Farmgate Milk Price," says Mr Hurrell.

“At the same time, we’re looking ahead as we implement our strategy and continue to invest for the future.
We have commenced projects to unlock manufacturing production capacity for our Ingredients and
Foodservice channels, with site works now underway at Studholme for high-value protein capacity and at
Edendale for a new UHT cream plant.

“We’re also continuing to invest to future proof our operations and supply chain network, with work
underway on a new Whareroa coolstore and plans for decarbonisation projects at Clandeboye, Edendale,
Edgecumbe and Whareroa to secure energy supply and reduce the Co-op’s emissions.

“As we focus on delivering the strongest farmer offering, we have announced new funding for farmers with
lower emissions milk and expanded the Fixed Milk Price programme that farmers can use to get more
certainty around the Farmgate Milk Price, says Mr Hurrell.”

Farmgate Milk Price

Fonterra is committed to delivering the highest sustainable Farmgate Milk Price to farmers. For the current
season, the forecast Farmgate Milk Price range is narrowing from $9.50-$10.50 per kgMS to $9.70-
$10.30, with the midpoint holding at $10.00 per kgMS.

Fonterra Co-operative Group
Page 2

“We’re seeing good demand for our quality products, and our teams have worked hard to optimise our
product portfolio to capture value from the market conditions, leaving us well contracted for the season.

“We have also optimised the current season’s Advance Rate Schedule to get cash to farmers sooner,
underpinned by our balance sheet strength.

“In terms of milk flows, our forecast milk collections for the year are up 2.7% on this time last year to 1,510
million kgMS. This follows favourable pasture growth across most of New Zealand earlier in the season,
noting many parts of the country are currently experiencing very dry conditions,” says Mr Hurrell.

Business performance

Fonterra's strong half year performance was underpinned by an optimised product mix, designed to
capture value across the Co-op’s sales channels.

“Our robust first half performance saw earnings growing alongside the strong Farmgate Milk Price,
reflecting the strength of our core business.

“Ingredients channel performance has been a highlight this half, with sales volume down 3.9% and
operating profit up $229 million to $696 million, reflecting better margins and improved product mix.

“Our Foodservice channel has seen sales volume growth of 8.3% this half, with Q2 gross margins
significantly up on Q1 as pricing adjusted to the higher milk price. Foodservice operating profit for the half
was a healthy $230 million, compared to the record high of $342 million in FY24 when input costs were
much lower.

“The Consumer channel saw good sales volumes, up 8.5%, and margin growth, despite the higher
Farmgate Milk Price, with operating profit largely flat on prior period at $173 million.

“Meanwhile, our IT & Digital transformation project, a once in a generation replacement of the Co-op’s
Enterprise Resource Planning software, is progressing well and remains on budget. The project is
expected to cost NZ $450-500 million across six years and annual expenditure reaches its peak in FY25 at
$130 million. This spend is included in our previously announced earnings forecast and despite this spend,
our FY25 results remain strong,” says Mr Hurrell.

Outlook

We have recently increased Fonterra’s FY25 full year forecast earnings range to 55-75 cents per share*,
which reflects the underlying strength of our core business as well as the resilience in our Consumer
channel.

“The Co-op is in a great shape, with milk collections, the forecast Farmgate Milk Price and earnings
performance all up on this time last year.

“As we look to the balance of the year ahead, we’re focused on maintaining this momentum in
performance, while progressing delivery of our strategy, including the dual-track Consumer divestment
process which is on track as planned,” says Mr Hurrell.

Note: *This forecast earnings range reflects Fonterra's underlying earnings before any deduction for forecast costs associated
with the Consumer divestment. When the Fonterra Board considers the full year dividend for FY25, it will consider, amongst other
factors, the nature of the underlying earnings and whether it is appropriate to include any costs associated with asset sales in the
financial year.

ENDS

For further information contact:

James Kaufman
Fonterra Communications
Phone: +64 21 507 072

Fonterra Co-operative Group
Page 3


Non-GAAP financial information
Fonterra uses several non-GAAP measures when discussing financial performance. Non-GAAP measures are not
defined or specified by NZ IFRS.

Management believes that these measures provide useful information as they provide valuable insight on the
underlying performance of the business. They may be used internally to evaluate the underlying performance of
business units and to analyse trends. These measures are not uniformly defined or utilised by all companies.
Accordingly, these measures may not be comparable with similarly titled measures used by other companies. Non-
GAAP financial measures should not be viewed in isolation nor considered as a substitute for measures reported in
accordance with NZ IFRS.

Non-GAAP measures are not subject to audit unless they are included in Fonterra’s audited annual financial
statements.

---

Fonterra Co-operative Group
2025 Interim Results

Content
Results overview3-6
Macro environment & Outlook7-13
Strategic focus14-20
Additional financial information21-34
Appendix35-40

2025 Interim Results Summary
Operating profit
$1,107m
 from 953m
3
Earnings per share
44c
 from 40c
Return on capital
10.2%
 from 13.4%
Interim dividend
22c
 from 15c
•Strong milk flows on-farm and strengthening demand across all three product channels are supporting:
–narrowed 2024/25 Farmgate Milk Price range to $9.70–$10.30per kgMS, from
$9.50 -$10.50 per kgMS
–increased FY25 earnings range to 55 –75 cents per share, from 40 –60 cents per share
–fully imputed interim dividend of 22 cents per share, up from an unimputed 15 cents per share
•Profit after tax up $55m, or 8%, to $729m due to higher operating profit partially offset by an increase in tax expense
–Operating profit up $154m, or 16%, to $1,107m due to improved product mix and gross margins in the
Ingredients channel
–Foodservice and Consumer channels had improved Q2 operating profit with stronger pricing and volumes,
though year to date earnings are down due to margins impacted by higher input costs in Q1
–Tax expense up $103m to $293m due to higher earnings and tax treatment change
•Earnings per share attributable to equity holders of 44 cents, up from 40 cents
•Balance sheet strength used to pay farmer owners earlier for milk collected
–Net Debt up $1.3b to $5.5b reflecting the higher advance rate and higher milk price
–Balance sheet remains strong with full year debt metrics on track to be within target range
3

Operating profit
net $113m 
674
40714
192
(99)
20(106)
721
8729
FY24
Total Group
profit after tax
Discontinued
operations
loss
FY24
Continuing
operations
profit after tax
Gross
profit
Operating
expenses
OtherNet finance costs
and tax
FY25
Continuing
operations
profit after tax
Discontinued
operations
FY25
Total Group
profit after tax
Higher profit after tax driven by improved operating performance
Note: Profit after tax presented in the graph includes profit attributable to non-controlling interests. EPS presented is for profit attributable to equity holders of the Co-operative
1.Tax treatment change announced in FY24, Fonterra has exhausted its NZ tax losses and NZ tax expenses will generate imputation credits from FY25 onwards. As part of the change, dividends on supply backed shares are no longer treated as a
business expense by Fonterra
2.Additional income of $8m has been recognised in relation to customary post-completion adjustments from the 2023 Soprole business sale
FY24 H1 to FY25 H1 profit after tax
($ million)
43c EPS
•$103m increase in
tax expense
•$59m attributable to
the change in tax
treatment and will
be attached as
imputation credits
1
40c EPS
44c EPS44c EPS
•Reflects the loss on
sale of DPA Brazil in
October 2023
•Ingredients gross
profit up due to
improved gross margins
•Consumer gross
profit up due to sales
volume growth
•Post-completion
adjustments from 2023
Soprole divestment²
4
•$52m due to upgrading our
Enterprise Resource
Planning (ERP) system
•Costs associated with
the Divestment process
of Consumer

986(38)
300(33)
49(131)
(30)
38(26)
(16)
1,099
FY24
Operating profit
VolumeMarginOperating
expenses
and other
VolumeMarginOperating
expenses
and other
VolumeMarginOperating
expenses
and other
FY25
Operating profit
Ingredients
$229m 
Foodservice
$112m 
Consumer
$4m 
Operating profit driven by strong performance in Ingredients
Channel performance drivers
net $113m 
FY24 H1 to FY25 H1 continuing operations operating profit
($ million)
•Operating profit from the channels increased $113m
•Sales volumes growth from the butter portfolio in both Foodservice and Consumer
across China and Southeast Asia, and Foodservice IQF mozzarella
•Ingredients gross margin increased due to favourable margin hedging in the Non-
Reference portfolio, lower cost of milk in Australia and favourable milk expense
phasing in New Zealand. Partially offset by a lower benefit from price relativities
•Foodservice and Consumer margins were impacted by the increase in the cost of milk
in Q1 but recovered in Q2 as in-market pricing strengthened
•Higher operating expenses in Ingredients and Foodservice mainly due to the impact of
costs associated with upgrading our ERP system
•Consumer operating expenses were impacted by costs associated with the proposed
Consumer divestment
5

($ million)202320242025
Average capital employed
8,0927,8557,509
Net operating profit after tax
2
1,0431,004829
Return on Capital (%)
12.9%12.8%11.0%
828
741
1,121
1,650
1,237
12,303
12,146
13,005
12,303
12,165
20212022202320242025
Total Group net operating profit after tax ($m)Average capital employed ($m)
Return on Capital
6.7%
6.1%
8.6%
13.4%
10.2%
Return on capital
Note: Figures presented are on a 12-month basis to 31 January and include impairments
1.Net operating profit after tax by channel is on a continuing operations basis
2.Normalised basis
•Return on capital of 10.2%, above the 5-year average and tracking
towards the top end of the FY25 target range of 8 – 10%
•Change in notional tax rate from 16.1% to 27.0%, which increased the tax
charge by $185m and a (1.5)% impact on return on capital
Ingredients
11.0%
 from 12.8%
Foodservice
11.7%
 from 23.6%
Consumer
5.8%
 from 4.7%
Return on Capital by channel
1
Total Group Return on Capital
Average capital employed
1,7501,8862,204
Net operating profit after tax
2
155445257
Return on Capital (%)
8.9%23.6%11.7%
Average capital employed
2,4562,3442,452
Net operating profit after tax
2
(159)111142
Return on Capital (%)
(6.5)%4.7%5.8%
For 12-month period to 31 January
6
2

Macro Environment
& Outlook

Improving supply and
strong demand from key
importing regions
Production
Imports
•Dairy market conditions remain favourable:
–Continued strong demand from key import regions,
particularly Southeast Asia
–Chinese dairy import demand improving mainly due
to reduced domestic production
–US milk production slowly recovering from impact of
bird flu. Cheese production is projected to grow due
to new processing capacity
–EU production is improving as key member states
recover from animal health issues. Structural issues,
such as environmental regulations, may potentially
limit future growth
–Australian milk production up compared to last
season, but drier conditions, lower incomes and farm
exits may limit growth
–New Zealand’s milk production is higher mainly due
to favourable weather
Note: Imports are total global imports, and production is total for each country.
Refer to appendix for source data and date ranges
US
3-month
0.2% 
12-month
0.1% 
NZ
3-month
2.1% 
12-month
2.0% 
EU
3-month
0.8% 
12-month
0.6% 
Australia
3-month
1.2% 
12-month
1.7% 
Asia(ex China)
3-month
7.4% 
12-month
4.5% 
MEA
3-month
1.0% 
12-month
1.3% 
LATAM
3-month
4.9% 
12-month
5.0% 
8
China
3-month
3.9% 
12-month
8.8% 

Monthly milk prices
driven by strengthening
demand for
Reference Products
•Value of milk has materially increased season on
season as Reference product prices increase
•The weighted average shipment price for GDT
Reference products has increased 23% from last
season¹
–with GDT shipment prices for WMP, butter and
AMF increasing 17%, 38% and 47% over the
same period, respectively
–WMP has had sustained price increases since
lows of ~USD2,500/MT at the start of the
2022/23 season; and
–both GDT butter and AMF prices have
reached 5-year record highs this season
•The Farmgate Milk Price also benefited from:
–favourable currency movements
–higher forecast milk collections of 1,510m
kgMS, up 39m kgMS from 1,471m kgMS
$6
$7
$8
$9
$10
$11
JunJulAugSepOctNovDecJanFebMarAprMay
2023/24 season2024/25 season
Monthly Milk Prices
($ per kgMS)
Indicative monthly milk
prices for 2024/25 season
forecast midpoint of $10.00
2023/24 season monthly milk
prices average to $7.83, the
Farmgate Milk Price
9
1. Weighted average shipment prices for the period June to January

Reference portfolio value higher due to WMP and butter demand
Fonterra Revenue Reference and Non-Reference
Price Relativities
(USD/MT)
Note: Refer to additional information for source data and date ranges
10
H1 FY23H1 FY24H1 FY25
Non-Reference Product shipment price
Reference Product shipment price
•Average H1 price for the Reference portfolio increased USD 721 per MT, or 23%, compared with the Non-Reference portfolio which
increased USD 201 per MT, or 5%, narrowing the spread between the two portfolios
•The Reference portfolio price has increased due to strong demand for WMP across all regions, particularly China as local supply
continues to rebalance. Butter prices also increased against strengthened global demand
•The Non-Reference portfolio price has been stable with strong demand for cheese at the start of H1 allowing strong cheese
contracting over peak production, following constrained supply in the Northern Hemisphere
Q1Q2H1
Average Non-Reference price
4,3334,2184,272
Average Reference price
3,2983,0553,131
Price difference
1,0351,1631,141
Q1Q2H1
Average Non-Reference price
4,3984,5344,473
Average Reference price
3,9243,8213,852
Price difference
474713621
2,500
3,500
4,500
5,500
6,500

20242025Change
Sales Volume (‘000 MT)
Reference Products872844(3)%
Non-Reference Products4224394%
Revenue (NZD)
Reference Products ($ billion) 4.75.722%
Non-Reference products ($ billion) 2.93.311%
Reference Products ($ per MT) 5,3986,78326%
Non-Reference products ($ per MT) 6,9567,3956%
Cost of Milk (NZD)
Reference Products ($ billion) (3.5)(4.5)(31)%
Non-Reference Products ($ billion) (1.4)(1.8)(22)%
Reference Products ($ per MT)(3,957)(5,352)(35)%
Non-Reference Products ($ per MT)(3,404)(3,989)(17)%
New Zealand-sourced Ingredients’ product mix
Note: Percentages as shown in table may not align to the calculation of percentages based on numbers in the table due to rounding of figures
Table includes Ingredients’ products that are on-sold to the Foodservice and Consumer channels and excludes bulk liquid milk. Bulk liquid milk for 2025 was 36,000 MT of kgMS equivalent (for the comparative period it was 35,000 MT of kgMS
equivalent). Milk solids used in the Reference Products sold were 470m kgMS and 215m kgMS in the Non-Reference Products (for the comparative period 480m kgMS in Reference Products and 215m kgMS in Non-Reference Products)
•Favourable product mix shift between Reference and Non-Reference
portfolio, 17,000 MT more into higher value Non-Reference products
and 28,000 MT less Reference products
•Reference portfolio revenue per MT increased materially more than
the Non-Reference portfolio, 26% compared to 6%, due to the
improved demand for WMP and butter
•Reference portfolio cost of milk per MT also increased materially more
than the Non-Reference portfolio, 35% compared to 17%, due to the
strong rise in the value of fat and the Reference portfolio having a
higher fat component
•The relative movement year-on-year in the Reference and Non-
Reference portfolios on a revenue less cost of milk per metric tonne
basis are broadly in-line, down 1% and 4%, respectively
•The total value of both portfolios on a revenue less cost of milk basis
are stable due to the favourable product mix shift
11

396
75
237
109
44
51
62
382
74
228
105
45
51
57
335
84
244
112
42
50
60
356
84
228
101
53
45
60
359
84
246
108
52
44
64
Whole Milk PowderSkim Milk PowderCream
(Butter and AMF)
CheeseCream (other)CaseinOther Proteins
Breakdown of milk solids allocated to product groups
Reference ProductsNon-Reference Products
NZ milk solids manufactured (kgMS millions)
For 6 months to 31 January
% milk solids manufactured
1. Changes in table present total NZ manufactured milk solids and does not align to charts which exclude Butter Milk Powder, and other smaller Non-Reference commodity groups
12
2122232425212223242521222324252122232425212223242521222324252122232425
7.7%
7.9%
9.1%9.1%8.7%
40.7%
40.5%
36.1%
38.4%
37.2%
24.3%
24.2%
26.3%
24.6%
25.7%
11.2%
11.2%
12.1%
10.9%
11.3%
4.5%
4.8%
4.6%
5.7%
5.4%
5.3%
5.4%
5.4%
4.9%
4.6%
6.3%
6.0%
6.5%
6.4%
6.7%
Whole Milk Powder:
•Strong demand for WMP across all regions, particularly China as local supply rebalances
•Small increase in milk solids allocated due to better prices and increased milk supply in 2025, though the
percentage of the total allocation is below prior year reflective of Fonterra’s strategy of continuing growth
into high value products
Cream:
•Favourable returns for butter over AMF meant increased allocation of solids to butter in Reference portfolio
•Steady demand for cream in the Greater China Foodservice business resulted in similar solids allocated to
Non-Reference cream to the prior period
Cheese:
•During peak contracting period, the Northern hemisphere supply of cheese was constrained, supporting
better pricing in the cheese portfolio and better value relative to the WMP and cream portfolios
•Higher allocation of milk solids particularly to IQF mozzarella which has had strong demand and growth key
Asia markets and new markets such as the United Kingdom.
Proteins:
•Increased allocation of solids with higher demand from strategic customers in the US for high concentration
protein products, such as MPC85 used in RTD protein beverages
Change in kgMS millions
1
TotalReferenceNon-Reference
 26 20 6

FY25 outlook
$9.70 – $10.30
per kgMS
Forecast Farmgate Milk PriceForecast earnings
per share
55 – 75 cents
The forecast range reflects:
•Foodservice and Consumer margins in H2 are expected to be
higher than prior year H2, but down on H1 this year due to higher
input costs
•second half receiving a similar benefit to the first half from
price relativities
•forecast costs associated with the Consumer divestment excluded
The range has narrowed reflecting:
•well contracted sales book
•approximately 93% of the full year forecast USD cash flows
related to the 2024/25 season hedged
•finely balanced supply and demand for Reference Products
Note: The Fonterra Board considers, among other factors, the nature of the underlying earnings and whether it is appropriate to include any costs associated with asset sales incurred in the financial year when declaring a dividend. The Board will do
this when considering a full year dividend for FY25
13

Strategic Focus
Key business drivers

1,539
1,478
1,480
1,471
1,510
171
167
172
175
184
kgMS collected (million)Average collections per farm (thousand kgMS)
79.0%
79.1%
79.0%
78.1%
78.0%
~
Deliver strongest farmer offering
•The Co-op continues to adapt its commercial offering to be as competitive
as possible
•This season we adjusted the Advance Rate Schedule to get cash to farmer
shareholders sooner, and next season we’re introducing new customer-
funded incentives​
•The Co-op is also working to extend the breadth and depth of our support to
farmers, from making things easier on farm to more targeted engagement
with the next generation of owners
•Season to date collections, 1 June – 31 January,were 1,048m kgMS, 3.6%
ahead of the prior comparable period
•Forecast collections expected to be 1,510m kgMS, up 2.7% on the
prior season
•Higher collections due to more favourable weather conditions across the
majority of the country supporting pasture growth – noting exceptions such as
early wet conditions in the south and more recent dry conditions in some
regions
•Milk collections are forecast to be collected from around 8,200 farms, down on
prior year due to consolidation of farms, conversions to other land uses and
losses to competitors
•Higher production per farm due to favourable weather conditions, better
production per cow and larger average farm size
Fonterra supplier base and milk collections
Full season figures
1. Average number of farms supplying milk for the season
20212022202320242025
8,997
8,841
8,637
8,410
8,200
Milk collections market share
Average farms
1
Forecast
15

Note: All figures are to 31 July unless otherwise stated. kgMS data presented on a sales basis. Percentages are a
proportion of total kgMS sold
1. 2025 Return on Capital is a 12-month average to 31 January
Unleash our Ingredients engine
•On target to allocate around 76% of milk solids to Ingredients for FY25
–Allocation of milk solids to Reference portfolio expected to reduce from 55% to
53% as we focus on high value opportunities across channels
–Allocation to Non-Reference portfolio expected to be broadly stable year on year
•Higher milk allocations in 2026 and 2027 due to reclassification of current sales through
Consumer channel into Ingredients following the proposed Consumer divestment
Improved mix as solids shifted to high value ingredients
Full financial year figures
57.2%58.9%55.3%53.2%56%54%
22.0%
21.5%
23.0%
23.2%
29%
30%
79.2%
80.4%
78.3%
76.4%
85%
84.0%
9.0%
16.3%
10.2%
11.0%
202220232024202520262027
ReferenceNon-reference
Return on Capital
Strategy in Action: Studholme Expansion
•$75m investment into high-value proteins
•Expansion in manufacturing capacity of higher value functional proteins
enables us to deliver strong returns to our farmer shareholders
•High-protein dairy category is projected to grow by close to USD10b over the
next four years
•Construction started and production expected to come online in early 2026
16
1
PlannedStrategic targets

Keep momentum in Foodservice
Continued Foodservice growth driving higher milk allocation
Full financial year figures
Strategy in Action: Edendale Expansion
•$150m investment in a new UHT plant
•Unlocking up to 20m kgMS additional processing capacity in the
Foodservice portfolio in FY26
•Potential to increase capacity if the demand continues to grow as we
expand our Foodservice business in and beyond China
•Milk allocation on target to reach just under 16% of total portfolio by end of FY25,
with kgMS allocation up 12% from 210 last year to 235m kgMS
•Growth this year mainly from increase demand in cheese portfolio
•Key driver going forward is demand growth for high value products in major markets
like China. Globally, the demand for UHT cream is forecast to grow 4% per annum
till 2032
•Reduced allocation as a strategic target in 2026 is reflective of Foodservice
businesses impacted by proposed sale as part of the Consumer divestment process
17
13.1%13.1%
14.2%
15.7%
15%
16%
5.5%
15.7%
19.6%
11.7%
202220232024202520262027
Return on Capital
PlannedStrategic targets
Note: All figures are to 31 July unless otherwise stated. kgMS data presented on a sales basis. Percentages are a
proportion of total kgMS sold
1. 2025 Return on Capital is a 12-month average to 31 January
1

Progressing Consumer
Increased milk allocation and sales through Consumer
Full financial year figures
Divestment update
7.7%
6.5%
7.5%
7.9%
(0.4)%
(3.9)%
6.8%
5.8%
2022202320242025
Return on Capital
•Milk solids allocated to Consumer channel on target to be around 8% by year end
•Expected sales growth of 7% from 111 to 118m kgMS mainly due to the incremental
growth from China and South Asia
•Allocations beyond 2025 not shown, in line with the Co-op’s strategic focus and
Consumer divestment
18
•In November 2024 Fonterra confirmed it was pursuing a potential
divestment of the Consumer channel via either an IPO or Trade Sale
•The divestment process continues alongside Fonterra’s Separation
Management Office, tasked with carving out a standalone entity. The
work is on track with Fonterra’s deal team and advisors
•In February 2025, we announced that the new standalone entity would
be named Mainland Group should the IPO option proceed
•The Mainland Group will be led by CEO-elect René Dedoncker,
Fonterra’s Managing Director Global Markets Consumer & Foodservice,
and CFO-elect Paul Victor
•René and Paul will lead roadshow meetings with potential investor
groups, commencing in March 2025
•As the divestment process matures a farmer shareholder vote will be
conducted, and if approved, the Co-operative would target a significant
capital return
Planned
1
Note: All figures are to 31 July unless otherwise stated. kgMS data presented on a sales basis. Percentages are a
proportion of total kgMS sold
1. 2025 Return on Capital is a 12-month average to 31 January

FY25 full year forecast efficiency metrics
Note: data is on a full year forecast basis
1.Comparative information has been re-presented for consistency with the current period
2.Only YTD expenses related to Consumer divestment are included in the full year forecast as the total cost will vary based on the divestment outcome
Cash operating expenses
($/kgMS)
$1.32
$1.31
$1.37
$1.39
$1.45
$1.10
$1.17
$1.30
$1.36
$1.35
20212022202320242025
Inflation adjustedActualExcluding ERP & associated upgrades and YTD divestment costs
Core Operations manufacturing cash costs
($/kgMS)
$2.54
$2.58
$2.78
$2.64
$2.63
$2.11
$2.30
$2.63
$2.58
$2.63
20212022202320242025
Inflation adjustedActual
19
•FY25 cash operating expenses per kgMS are forecast to materially increase due to costs
associated with upgrading our ERP system and the proposed Consumer divestment
•Underlying cash operating expenses are in line with prior year after adjusting for costs
associated with ERP of $130m, or 8c/kgMS, and YTD proposed Consumer
divestment costs²
•Total spend on ERP upgrade is expected to be $450-$500m over a 6-year period, with
approximately $250m of the total spend expected to be incurred this year and the next
•Increase in cash expense slightly offset by the denominator effect of higher forecast FY25
milk production
•FY25 manufacturing cash costs per kgMS are forecast to increase 5c to $2.63 due to:
–inflation, one-off staff costs and incremental costs relating to a more complex
product mix, partially offset by
–higher forecasted milk solids collections and efficiency gains through performance
improvement programs
•Adjusting for inflation, manufacturing costs are forecast to be broadly in line with prior year
1

285
281
333
291
36
54
51
54
26
78
85
40
119
121
152
173
466
534
621
558
20212022202320242025
Other operationsDecarbonisationWastewaterNZ operations
Planned
~$700m
466
534
621
558
79
53
47
56
63
30
79
106
608
617
747
720
1,000
980
2021202220232024202520262027
Other capital investedGrowth capital expenditure
Essential capital expenditure
Planned
Strategic targets
~1,000
Capital investments to support resilience and growth
Capital invested
Full financial year figures ($ million)
Breakdown of essential capital expenditure
1
Full financial year figures ($ million)
•Forecasted FY25 total capital investment remains at around $1b with year-to-date capital invested of $304m (Essential $194m, Growth $50m and Other $60m).
•Majority of capital expenditure is weighted to the second half of the year due to the shape of the New Zealand milk supply curve, with the bulk of work on the
manufacturing and distribution assets undertaken during the winter period
•Essential capital expenditure is forecasted to be ~70% of total allocation. Of this, ~20% will be invested on decarbonisation and energy security projects as a part of
our roadmap to meet our sustainability commitments, ~10% on our wastewater assets to improve our environmental footprint and ~70% on maintaining and
improving our asset network in New Zealand and globally
•Increased growth capital expenditure forecast to be ~20% of total allocation. This is to supportthe growth of our Foodservice and Ingredients businesses, including
capacity expansion for high value products such as advanced proteins and UHT cream
•Other capital investment forecasted at ~10% of total allocation, includes Ki Tua Equity Investment Fund, Right of Use asset additions, and other equity investments
20
70%
20%
10%
20%
20%
10%
50%

Additional Financial
Information

Core
Operations
Global
Markets
Ingredients
Global Markets
Consumer &
Foodservice
Greater
China
Total
External sales volume (million kgMS)
340
4% 
200
7% 
249
11% 
789
1% 
Operating profit contribution from continuing operations
Ingredients
$
270m
$136m 
$
294m
$37m 
$
53m
$35m 
$
79m
$21m 
$
696m
$229m 
Foodservice
$
4m
$28m 
$
8m
$ - 
$
57m
$15m 
$
161m
$69m 
$
230m
$112m 
Consumer
$
(7)m
$7m 
$
13m
$1m 
$
157m
$2m 
$
10m
$ - 
$
173m
$4m 
Total¹
$
267m
$101m 
$
315m
$38m 
$
267m
$22m 
$
250m
$48m 
$
1,099m
$113m 
Diversified across markets and products
Operating profit performance by reporting segment and channel
22
116
61
72
(50)
77
96
-100
0
100
200
300
400
500
Operating profit by quarter
FY24
FY25
Q1Q2Q3Q4Q1Q2
251
216
274
157
225
471
0
50
100
150
200
250
300
350
400
450
500
208
134
109
12
94
136
0
50
100
150
200
250
300
350
400
450
500
1. Includes corporate costs for Core Operations, Global Markets Ingredients, Global Markets Consumer & Foodservice and Greater China of $143m, $52m, $85m and $50m ($80m, $25m, $39m and $26m for the comparative period), respectively

Channel performance
23
1.Percentages as shown in table may not align to the calculation of percentages based on numbers in the table
due to rounding of figures
2.Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss of equity
accounted investees
3.Includes corporate costs for Total, Ingredients, Foodservice and Consumer of $330m, $199m, $68m and $63m
($164m, $97m, $33m and $34m for the comparative period), respectively
For the six months ended 31 January
Total continuing operationsIngredientsFoodserviceConsumer
NZD million20242025∆%
1
202420252024202520242025
Sales volume ('000 MT)1,7211,723-1,0831,055295310343358
Sales volume (million kgMS)795789(1)%5925691211318289
Revenue11,08512,59214%7,0778,0622,1342,4501,8742,080
Cost of goods sold(9,049)(10,364)(15)%(6,109)(6,832)(1,573)(1,971)(1,367)(1,561)
Gross profit 2,0362,2289%9681,230561479507519
Operating expenses(1,109)(1,208)(9)%(539)(585)(228)(260)(342)(363)
Other
2
597934%38519111217
Operating profit
3
9861,09911%467696342230177173
Gross margin18.4%17.7%-13.7%15.3%26.3%19.6%27.1%25.0%
Operating profit margin8.9%8.7%-6.6%8.6%16.0%9.4%9.4%8.3%

Ingredients contributing to stronger milk price and earnings
Key performance drivers
Operating profit ($ million)
Within the regions
Quarterly performance
251
216
274
157
225
471
16.2%
11.9%
13.7%
11.3%
16.0%
14.8%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10. 0%
20. 0%
0
100
200
300
400
500
600
700
800
900
1000
FY24 Q1FY24 Q2FY24 Q3FY24 Q4FY25 Q1FY25 Q2
Operating profit ($ million)Gross margin (%)
FY25 H1
•Ingredients operating profit is up $229m, due to:
–higher attribution from Core Operations reflecting favourable margin hedging in the
Non-Reference portfolio and milk expense phasing in New Zealand which was
partially offset by narrower price relativities
–favourable in-market margins due to Australia having a stable milk price against
higher global commodity prices and strong protein prices in Europe
•The impact of costs associated with upgrading our ERP system are in Core
Operations allocation
•Lower in-market sales volumes due to the prior year having higher opening inventory
levels in Asia Pacific and lower WMP volumes in Middle East and Africa
•FY25 Q2 experienced higher sales volumes and stronger pricing in the butter and cheese
portfolios compared to last year. Year to date sales volumes remain behind the prior year
•Second half gross margins are expected to be broadly in line with first half, reflecting
stable of price relativities
Note: For the six months ended 31 January. Prepared on a continuing operations basis
24
467
136(23)
117(1)
696
FY24 H1
operating
profit
Core
Operations
VolumeMarginOperating
expenses and
other
FY25 H1
operating
profit

FY25 H1
Within the regions
342(28)
48(109)
(23)
230
FY24 H1
operating
profit
Core
Operations
VolumeMarginOperating
expenses and
other
FY25 H1
operating
profit
Volume growth in Foodservice continues
Key performance drivers
Operating profit ($ million)
Quarterly performance
25
•Foodservice operating profit is down $112m, due to:
–lower attribution from Core Operations reflecting higher input costs from the rising
cost of milk and allocation of costs associated with upgrading our ERP system
–in-market margins down year on year reflecting pressure from the increase in cost
of milk, particularly within Greater China UHT cream portfolio
–operating expenses and other up $23m reflecting impact of costs associated with
the Consumer divestment, increased staff costs and advertising and promotion
•Sales volume growth of 9%, mainly due to increased demand from Greater China for
butter in bakery sector and IQF mozzarella
•Q2 operating profit up from Q1 reflecting higher volumes and in-market teams achieving
better prices against higher input costs
•Key markets continue to strengthen, supporting improved pricing and ongoing volume
growth while remaining in competitive market conditions
208
134
109
12
94
136
29.4%
23.3%
23.5%
16.0%
18.0%
21.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
20. 0%
40. 0%
0
100
200
300
400
500
600
700
800
900
1000
FY24 Q1FY24 Q2FY24 Q3FY24 Q4FY25 Q1FY25 Q2
Operating profit ($ million)Gross margin (%)
Note: For the six months ended 31 January. Prepared on a continuing operations basis

FY25 H1
Within the regions
177(7)
39(24)
(12)
173
FY24 H1
operating
profit
Core
Operations
VolumeMarginOperating
expenses and
other
FY25 H1
operating
profit
Consumer operating performance
Key performance drivers
Operating profit ($ million)
Quarterly performance
26
116
61
72
(50)
77
96
28.8%
25.2%
26.5%
18.5%
22.9%
27.0%
-70.0%
-50.0%
-30.0%
-10.0%
10. 0%
30. 0%
-100
0
100
200
300
400
500
600
FY24 Q1FY24 Q2FY24 Q3FY24 Q4FY25 Q1FY25 Q2
Operating profit ($ million)Gross margin (%)
•Consumer operating profit is down $4m, due to:
–lower attribution from Core Operations reflecting higher input costs from the rising
cost of milk
–in-market margins are down reflecting pressure from the increase in cost
of milk and changes in product mix due to customers switching to value focused
options
–operating expenses are impacted by costs associated with Consumer divestment
•Sales volume growth of 7% due to higher South Asia powders and FBNZ butter volumes
•Higher Q2 gross margins due to proactive revenue management initiatives
•Key markets continue to strengthen, supporting improved pricing and ongoing volume
growth while remaining in competitive market conditions
Note: For the six months ended 31 January. Prepared on a continuing operations basis

Operating earnings by
In Scope and Out of Scope
In ScopeOut of ScopeTotal
External
sales volume
(million kgMS)
130
7% 
659
2% 
789
1% 
Operating profit contribution from continuing operations
Ingredients
$
1m
$27m 
$
695m
$202m 
$
696m
$229m 
Foodservice
$
35m
$5m 
$
195m
$107m 
$
230m
$112m 
Consumer
$
172m
$6m 
$
1m
$10m 
$
173m
$4m 
Total
$
208m
$28m 
$
891m
$85m 
$
1,099m
$113m 
Note: For six months ended 31 January. Prepared on a continuing operations basis
Comparative changes are to FY24, and excludes impairments
27
•‘In Scope’ represents businesses included in Fonterra’s proposed
Consumer divestment
•In preparing the In Scope and Out of Scope breakdowns we have:
–applied the same principles and assumptions used in our
externally published channel and segment reporting
–reflected the refinement of what is included within the In
Scope businesses (including removal of China Consumer
business and Fonterra retaining the Dammam plant in Saudi
Arabia and other perimeter adjustments)
–reflected existing transfer pricing arrangements; and
–attributed Core Operations operating profit/loss to the Out of
Scope businesses
•This view differs from the divestment roadshow presentation
released to the NZX on 10 March 2025 primarily due to the
roadshow figures reflecting:
–The proposed contractual arrangements post separation from
Fonterra; and
–a preliminary view on the stand-alone cost base of
Mainland Group

(397)224
423
(2,387)68
(2,069)
FY24 H1
free cash flow
EarningsSuppliers
payable
Trade and
other working
capital
Capex and
other
FY25 H1
free cash flow
Free cash flow remains a key focus
Free cash flow for the first six months is typically an outflow, reflecting the seasonal nature of the business
•Free cash flow for the first six months ending 31 January 2025 was a $2,069m outflow, this was a larger outflow from the prior period due to:
–a larger increase in trade and other working capital primarily reflecting the impact of a higher Milk Price and higher inventory volume, partially offset by;
–a larger increase in suppliers payable as a result of the higher Milk Price and milk collections, which was around $750m lower due to the accelerated advance rate, and
–increased cash earnings against the comparative period
369
(632)
(849)
(30)
(397)
(2,069)
FY20 H1FY21 H1FY22 H1FY23 H1FY24 H1FY25 H1
Five-year trend
($ million)
Movements in free cash flow
($ million)
28

6.1
5.6
5.8
4.2
5.5
4.3
5.3
3.2
2.6
20212022202320242025
Half YearFull Year
•Net debt is $1.3b higher, due to:
–an increase in working capital during the year
reflecting higher milk prices and the accelerated
advance rate
•Gearing ratio increased reflecting:
–higher net debt partly offset by an increase in
retained earnings
•Working capital days up reflecting higher volume and
value of milk in inventory compared to prior year
47.3
44.1
43.3
34.6
39.4
38.5
42.4
28.8
24.0
20212022202320242025
Half YearFull Year
Gearing ratio (%)
Working capital days
93
9898
92
93
20212022202320242025
Credit rating
S&P Global
Ratings
A-Stable outlook
Fitch RatingsAStable outlook
Resilience of the balance sheet reflected in key metrics and ‘A band’ credit rating
Net debt ($ billion)
29

For the six months ended
31 January
Total Group
Continuing operationsDiscontinued operations
NZD million20242025∆%20242025∆%20242025∆%
Sales volume ('000 MT)1,7801,723(3)%1,7211,723-59 --
Sales volume (million kgMS)
1
795789(1)%795789(1)%- --
Revenue11,25712,59212%11,08512,59214%172 --
Cost of goods sold(9,155)(10,364)(13)%(9,049)(10,364)(15)%(106)--
Gross profit 2,1022,2286%2,0362,2289%66 --
Gross margin (%)18.7%17.7%18.4%17.7%38.4%-
Operating expenses(1,208)(1,208)-(1,109)(1,208)(9)%(99)--
Other
2
598747%597934%- 8 -
Operating profit9531,10716%9861,09911%(33)8 124%
Net finance costs(89)(85)4%(82)(85)(4)%(7)- -
Tax expense(190)(293)(54)%(190)(293)(54)%- - -
Profit after tax
3
674 729 8%714 721 1%(40)8 120%
Earnings per share (cents)
40
44
10%
43
44
2%
(3)
--
Normalisations
4
66---
--
66
--
Normalised profit after tax
3
740729(1)%714
7211%
26
8(69)%
Normalised EPS (cents)
4444-43
442%
1
-(100)%
Total Group performance
30
1.kgMS volumes only include continuing operations
2.Comprises of other operating income, net foreign exchange gains and share of profit or loss of equity accounted investees
3.Includes amounts attributable to non-controlling interests
4.Normalisations comprises of $(66)m in relation to the sale of DPA Brazil

Return on capital
For the 12 months ended 31 January
NZD million
20242025
Total Group normalised operating profit
1,9591,681
Finance income on long-term advances
814
Notional tax charge
(317)(458)
Total Group net normalised operating profit after tax
1,6501,237
Capital employed at 31 January
12,32313,789
Impact of seasonal capital employed
(20)(1,624)
Average capital employed
12,30312,165
Return on capital
13.4%10.2%
31
•Return on capital of 10.2%, above the 5-year average and
tracking to be within FY25 target range of 8 – 10%
•The change relative to previous period reflects:
−$278m lower operating profit as previous period
includes higher H2 FY23 earnings; and
−change in notional tax rate from 16.1% to 27.0%
which increased the tax charge by $185m with
(1.5)% impact on return on capital
•Average capital employed stable at around $12b

Global Markets Ingredients end-to-end performance
32
1.Global Markets Ingredients performance is prepared on a continuing operations basis and includes sales to
other segments
2.Percentages as shown in table may not align to the calculation of percentages based on numbers in the table
due to rounding of figures
3.Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss of equity
accounted investees
4.Includes corporate costs for Total, Ingredients, Foodservice and Consumer of $116m, $108m, $5m and $3m
($57m, $52m,$3m and $2m for the comparative period), respectively
For the six months ended 31 January
Total Global Markets Ingredients
1
IngredientsFoodserviceConsumer
NZD million20242025∆%
2
202420252024202520242025
Sales volume ('000 MT)630616(2)%595574283379
Sales volume (million kgMS)355340(4)%337319141645
Revenue4,6325,17812%4,3284,8192392716588
Cost of goods sold(3,915)(4,299)(10)%(3,663)(3,976)(205)(247)(47)(76)
Gross profit 71787923%66584334241812
Operating expenses(369)(388)(5)%(343)(359)(20)(18)(6)(11)
Other
3
354426%28386016
Operating profit
4
38353540%350522206137
Gross margin15.5%17.0%15.4%17.5%14.2%8.9%27.7%13.6%
Operating profit margin8.3%10.3%8.1%10.8%8.4%2.2%20.0%8.0%

Global Markets Consumer and Foodservice end-to-end performance
33
For the six months ended 31 January
Total Global Markets
Consumer & Foodservice
1
IngredientsFoodserviceConsumer
NZD million20242025∆%
2
202420252024202520242025
Sales volume ('000 MT)609582(4)%205171109110295301
Sales volume (million kgMS)215200(7)%1119233347074
Revenue3,4323,6526%1,1821,2116517061,5991,735
Cost of goods sold(2,735)(2,904)(6)%(1,095)(1,071)(476)(541)(1,164)(1,292)
Gross profit 6977487%87140175165435443
Operating expenses(462)(499)(8)%(86)(97)(96)(112)(280)(290)
Other
3
171912%65141010
Operating profit
4
2522686%7488057165163
Gross margin20.3%20.5%7.4%11.6%26.9%23.4%27.2%25.5%
Operating profit margin7.3%7.3%0.6%4.0%12.3%8.1%10.3%9.4%
1.Global Markets Consumer and Foodservice performance is prepared on a continuing operations basis and
includes sales to other segments
2.Percentages as shown in table may not align to the calculation of percentages based on numbers in the table
due to rounding of figures
3.Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss of equity
accounted investees
4.Includes corporate costs for Total, Ingredients, Foodservice and Consumer of $119m, $36m, $27m and $56m
($55m, $15m, $12m and $28m for the comparative period), respectively

Greater China end-to-end performance
34
For the six months ended 31 January
Total Greater China
1
IngredientsFoodserviceConsumer
NZD million20242025∆%
2
202420252024202520242025
Sales volume ('000 MT)4825259%2833101581674148
Sales volume (million kgMS)22524911%143159748189
Revenue3,0213,76225%1,5672,0321,2441,473210257
Cost of goods sold(2,399)(3,161)(32)%(1,351)(1,785)(892)(1,183)(156)(193)
Gross profit 622601(3)%2162473522905464
Operating expenses(278)(321)(15)%(110)(129)(112)(130)(56)(62)
Other
3
716129%482711
Operating profit
4
351296(16)%110126242167(1)3
Gross margin20.6%16.0%13.8%12.2%28.3%19.7%25.7%24.9%
Operating profit margin11.6%7.9%7.0%6.2%19.5%11.3%(0.5)%1.2%
1.Greater China performance is prepared on a continuing operations basis and includes sales to other segments
2.Percentages as shown in table may not align to the calculation of percentages based on numbers in the table
due to rounding of figures
3.Consists of other operating income, net foreign exchange gains/(losses) and share of profit or loss of equity
accounted investees
4.Includes corporate costs for Total, Ingredients, Foodservice and Consumer of $95m, $55m, $36m and $4m
($52m, $30m, $18m and $4m for the comparative period), respectively

Appendix

FY25 Integrated Scorecard
as at 31 January 2025
Key MetricsFY23 ActualFY24 ActualFY25 ScorecardFY25 YTD
PeopleSerious harm¹1816121
Percentage of Health, Safety and Wellbeing priority actions fully completed by duedate76%77%95%98%
Culture Measure79798179
NatureGHGemissions(Scope1,2)²(14.1)%(18.5)%(21.1)%(21.2)%
Absolute water reduction across manufacturing sites (15% by FY30)²(6.7)%(12.4)%(13.1)%(19.5)%
RelationshipsShareofNewZealandmilkcollectedfortheseasonto31May79.0%78.1%78%78.2%
Delivered infull,ontime(DIFOT,ex-NewZealand)53.2%70.8%80%79.4%
Financial /
Assets &
Infrastructure
CashoperatingexpensesperkgMS(real)³1.371.361.461.45
Core Operations manufacturing cash costs perkgMS(real)⁴2.782.642.652.63
Returnoncapital(FY)12.4%11.3%8%-10%On-track
FarmgateMilkPrice($)$8.22$7.83$7.75-$9.25$9.70-$10.30⁵
Alignment
Rights
Total shareholder return
(12-month Volume Weighted Average Price of FCG share plus dividend)⁶
$2.38
$1.00
$2.66
$0.55
3.36
On-farmprofitability($perhectare)⁷3,017Not AvailableNot Available
1.A broader definition, which also includes Contractors, has been adopted for FY25 resulting in an increased number of
injuries captured under the revised definition.
2.RelativetoFY18Baseline.
3.Based on New Zealand and Australia milk solids. FY25 excludes divestment related costs. Efficiency measures have
been restated using FY25 as the base year.
4.Based on New Zealand milk solids collected. Excludesthecostofmilk.
5.Latest Forecast Farmgate Milk Price announced 20 March 2025 with midpoint of $10.00.
6.Volume Weighted Average Price (VWAP) for the period 1 October to 30 September. FY25 YTD is 12-month VWAP to 31
January 2025.
7.DairyNZEconomic Survey 2022-2023(Owner-Operator).Publication of 2024 survey expected in July 2025.
36

Data sources
Dairy Production and Imports
•12-month production
−Australia, New Zealand, US (Jan 2024 to Jan 2025) Dairy Australia, DCANZ, USDA
−EU (Dec 2023 to Dec 2024), Eurostat
•3-month production
−Australia, New Zealand, US (Nov 2023 – Jan 2024 to Nov 2024 – Jan 2025) Dairy Australia, DCANZ, USDA
−EU (Oct 2023 – Dec 2023 to Oct 2024 – Dec 2024) Eurostat
•12-month imports
−China (Dec 2023 to Dec 2024) S&P Global
−LATAM, Asia (excl. China), Middle East & Africa (Dec 2023 – Dec 2024) S&P Global
•3-month imports
−China (Oct 2023 – Dec 2023 to Oct 2024 – Dec 2024) S&P Global
−LATAM, Asia (excl. China), Middle East & Africa (Oct 2023 – Dec 2023 to Oct 2024 – Dec 2024) S&P Global
37

Fonterra uses several non-GAAP measures when discussing financial performance. Non-GAAP measures are not defined or specified by NZ IFRS.
Management believes that these measures provide useful information as they provide valuable insight on the underlying performance of the business. They may be used internally to
evaluate the underlying performance of business units and to analyse trends. These measures are not uniformly defined or utilised by all companies. Accordingly, these measures may
not be comparable with similarly titled measures used by other companies. Non-GAAP financial measures should not be viewed in isolation nor considered as a substitute for measures
reported in accordance with NZ IFRS. Non-GAAP measures are not subject to audit unless they are included in Fonterra’s audited annual financial statements.
Please refer to the Glossary for definitions of non-GAAP measures referred to by Fonterra.
38
Non-GAAP Measures
Attributable to equity holders of the Co-operative
is used to indicate that a measure or sub-total excludes
amounts attributable to non-controlling interests
Average capital employed
is a 13-month rolling average of capital employed
Bulk liquids
means bulk raw milk that has not been processed and bulk
separated cream
Capital employed
is adjusted net debt less the cash adjustment (used in
calculating adjusted net debt), plus cash and cash equivalents
held by subsidiaries for working capital purposes, plus equity
excluding hedge reserves and net deferred tax assets
Capital invested
is capital expenditure plus right of use asset (e.g. leases)
additions and business acquisitions, including equity
contributions, long-term advances, and other investments
Cash operating expenses per kgMS
is continuing operations operating expenses, less non-cash
costs (depreciation, amortisation and impairments. Shown by
kilogram of New Zealand and Australia milk solids collected
Consumer
is the channel of branded consumer products, such as powders,
yoghurts, milk, butter and cheese
Continuing operations
means operations of the Group that are not discontinued
operations
Core Operations
represents core operating functions including New Zealand milk
collection and processing operations and assets, supply chain,
Fonterra Farm Source retail stores, and the physical and
financial commodity portfolio management function
Core Operations manufacturing cash costs per kgMS
is the logistics costs, variable and fixed costs of the COO
business unit less non-cash costs (depreciation, amortisation and
impairment) shown by kilogram of New Zealand milk solids
collected. Excludes milk, ocean freight and farm costs.
Debt to EBITDA
is adjusted net debt divided by Total Group normalised earnings
before interest, tax, depreciation and amortisation (Total Group
normalised EBITDA) excluding share of profit/loss of equity
accounted investees, net foreign exchange gains/losses and any
normalised EBITDA relating to entities divested during the year
Discontinued operations
means a component of the Group that is classified as held for
sale (or has been sold) and represents, or is part of a single
coordinated plan to dispose of, a separate major line of business
or geographical area of operations, or is a subsidiary acquired
exclusively with a view to resale
Eliminations
represents eliminations of inter-business unit sales
Gearing ratio (%)
is adjusted net debt divided by total capital. Total capital is equity
excluding hedge reserves, plus adjusted net debt
Global Markets Consumer & Foodservice
represents the Ingredients, Foodservice and Consumer channels
in the Middle East and Africa, Oceania, South and South-East
Asia regions
Global Markets Ingredients
represents the Ingredients, Foodservice and Consumer channels
in the Middle East and Africa, Oceania, South and South-East
Asia regions
Glossary

Glossary
Greater China
represents the Ingredients, Foodservice and Consumer
channels in Greater China
Ingredients
represents the channel comprising bulk and specialty dairy
products such as milk powders, dairy fats, cheese and proteins
manufactured in New Zealand, Australia and Europe, or
sourced through our global network, and sold to food producers
and distributors
Net debt
is calculated as total borrowings, plus bank overdraft, less cash
and cash equivalents, plus a cash adjustment for 25% of cash
and cash equivalents held by the Group’s subsidiaries, adjusted
for derivatives used to manage changes in hedged risks on
debt instruments. Amounts relating to disposal groups held for
sale are included in the calculation
Non-Reference Products
means all NZ milk solids processed by Core Operations, except
for Reference Commodity Products
Normalisation adjustments
means adjustments made for certain transactions that meet the
requirements of the Group’s Normalisation Policy. These
transactions are typically unusual in size and nature.
Normalisation adjustments are made to assist users in forming a
view of the underlying performance of the business.
Normalisation adjustments are set out in the Non-GAAP
Measures section. Normalised is used to indicate that a measure
or sub-total has been adjusted for the impacts of normalisation
adjustments. E.g., ‘Normalised EBIT’
Price relativities
refers to the difference in the weighted average price (in USD)
between the Reference Product portfolio and Non-Reference
Product portfolio. The difference between these two weighted
average prices is a key driver of the Ingredients’ gross margin
Reference Products
are the five commodity groups used to calculate the Farmgate
Milk Price, being Whole Milk Powder (WMP) and Skim Milk
Powder (SMP), and their by-products Butter, Anhydrous Milk Fat
(AMF) and Buttermilk Powder (BMP)
Total Group
is used to indicate that a measure or sub-total comprises
continuing operations, discontinued operations and non-
controlling interests. E.g., ‘Total Group operating profit’
Trade working capital
is total trade and associate receivables plus inventories, less
trade and associate payables and accruals. It excludes amounts
owing to suppliers and employee entitlements and includes trade
working capital classified as held for sale
Working capital days
is calculated as 13-month rolling average working capital divided
by revenue from the sale of goods (excluding impact of derivative
financial instruments) multiplied by the number of days in the
period. The working capital days calculation excludes other
receivables, prepayments, other payables and includes working
capital classified as held for sale
Foodservice
represents the channel selling to businesses that cater for out-of-
home consumption; restaurants, hotels, cafés, airports, catering
companies etc. The focus is on customers such as; bakeries,
cafés, Italian restaurants, and global quick-service restaurant
chains. High performance dairy ingredients including whipping
creams, mozzarella, cream cheese and butter sheets, are sold in
alongside our business solutions under the Anchor Food
ProfessionalsTM brand
39

---

Interim Report 2025
Pūrongo Taupua

Message from our Chair and CEO3
Our Strategy5
Financial Overview 7
Progress7
Deliver strongest farmer offering
8
Unleash our Ingredients engine
9
Keep momentum in Foodservice
10
Progressing Consumer
11
Invest in operations for the future
12
Build on our sustainability position
13
Innovate to drive our advantage
14
Interim Financial Statements15
Independent Auditor’s Review Report
16
Interim Financial Statements
18
Basis of Preparation
22
Notes to the Interim Financial Statements
24
Non-GAAP Measures33
Glossary35
Directory38
Fonterra uses several non-GAAP measures when discussing financial
performance. Non-GAAP measures are not defined or specified by NZ IFRS.
Management believes that these measures provide useful information as they
provide valuable insight on the underlying performance of the business. They
may be used internally to evaluate the underlying performance of business units
and to analyse trends. These measures are not uniformly defined or utilised by
all companies. Accordingly, these measures may not be comparable with similarly
titled measures used by other companies. Non-GAAP financial measures should
not be viewed in isolation nor considered as a substitute for measures reported
in accordance with NZ IFRS. Non-GAAP measures are not subject to audit unless
they are included in Fonterra’s audited annual financial statements.
Please refer to the Non-GAAP Measures section of this report for reconciliations
of NZ IFRS to non-GAAP measures, and the Glossary for definitions of non-
GAAP measures referred to by Fonterra.
Contents
Front cover:
Shanelle & Harley, Canterbury
Bridgeman Farm, Taranaki
2
Fonterra Interim Report 2025

Sustained
progress
As we transform our Co-op for tomorrow,
we continue to perform today
Kia ora,
Welcome to Fonterra Co-operative Group’s FY25
Interim Report.
We’re pleased to report that Fonterra has delivered a
strong first half result, with the Co-op’s milk collections,
forecast Farmgate Milk Price and earnings performance
all up on this time last year.
Fonterra’s forecast Farmgate Milk Price is $9.70-$10.30
per kgMS with a midpoint of $10.00 per kgMS and we have
announced an interim dividend of 22 cents per share.
This is a positive outcome for farmer shareholders and
unit holders and demonstrates our focus on driving
end-to-end value, which includes delivering strong
financial performance while maintaining the highest
sustainable Farmgate Milk Price.
Our teams have worked hard across the value chain
to optimise production and drive demand for farmers’
milk through our mix of sales channels across our
global markets.
This has resulted in strong earnings performance in our
Ingredients business. Our Foodservice earnings are down
on last year’s record result, but we have seen good growth
in sales volumes and above average margins in both our
Foodservice and Consumer businesses, despite the higher
Farmgate Milk Price.
Peter McBride
Chair
Miles Hurrell (right)
Chief Executive Officer
“Our teams have worked
hard across the value chain to
optimise production and drive
demand for farmers’ milk.”
3
Fonterra Interim Report 2025ContentsOur StrategyProgress Interim Financial StatementsNon-GAAP MeasuresDirectoryGlossaryChair & CEO

As we look out to the remainder of the financial year,
the Co-op is in good shape, thanks to our first half
earnings performance as well as the ongoing strength
of our balance sheet.
Global markets are increasingly volatile, as geopolitical
instability ramps up. Volatility creates both challenges
and opportunities for the Co-op, which we are prepared
to manage but continue to watch closely.
We have recently increased the Co-op’s FY25 full year
forecast earnings range to 55-75 cents per share, which
reflects the underlying strength of our core business as
well as the resilience in our Consumer channel.
Finally, a reminder that the tax treatment of dividends
paid on supply-backed shares has changed due to the
Co-op now paying tax in New Zealand. This includes the
ability for farmer shareholders to use these imputation
credits to offset their own tax liability.
Ngā mihi,
Peter McBride
Chairman
Miles Hurrell
Chief Executive Officer
At the same time, we’re looking ahead as we implement
our strategy and continue to invest for the future.
We’re committed to delivering the strongest farmer
offering, which includes getting cash into the hands of
farmers faster, supported by our strong balance sheet.
We have announced new funding for farmers producing
lower emissions milk and have expanded the Fixed Milk
Price programme that farmers can use to get more
certainty around the Farmgate Milk Price.
We have commenced projects to unlock manufacturing
production capacity for our Ingredients and Foodservice
channels, with site works now underway at Studholme
for high-value protein capacity and at Edendale for a new
UHT cream plant.
We’re also continuing to invest to future proof our
operations and supply chain network, with work underway
on a new Whareroa coolstore and decarbonisation projects
at multiple manufacturing sites to secure energy supply
and reduce the Co-op’s emissions.
Continuous efficiency improvements within our
manufacturing network remain a strategic priority for
us, due to the influence this has on Farmgate Milk Price
performance. We have more work to do in this area.
Alongside work to enhance our core business, we are
progressing the process to explore divestment options for
our global Consumer business as well as Fonterra Oceania
and Sri Lanka.
We are pursuing both a trade sale and initial public offering
(IPO) as potential divestment options, with good progress
made in both processes.
The decision to pursue a divestment is grounded in an
understanding of how to best create value for farmer
shareholders and unit holders, which is our high performing
Ingredients and Foodservice businesses. Ultimately this will
be a farmer shareholder decision.
Forecast Farmgate Milk Price range
NZ$9.70-$10.30
per kgMS
Earnings forecast
55 -75 cent s
per share
Profit after tax
NZ$729m
up 8%
Interim dividend, fully imputed
22 cents
per share
4
Fonterra Interim Report 2025ContentsOur StrategyProgress Interim Financial StatementsNon-GAAP MeasuresDirectoryGlossaryChair & CEO

Progress
on strategy
Adam, Taranaki
We’re playing to our strengths
to be the source of the world’s
most valued dairy
5
*SRXIVVE-RXIVMQ6ITSVX2025ContentsChair & CEOProgress Interim Financial StatementsNon-GAAP MeasuresDirectoryGlossaryOur Strategy

Our Purpose
Our Co-operative, empowering people, to create goodness
for generations. You, me, us together. Tātou, tātou.
The source of the world’s most valued dairy
Our Vision
Our Choices
Outcomes
Strong
Shareholder returns
Stable
balance sheet
Enduring
Co-op
Build on our
Sustainability
position
Deliver
strongest
farmer
offering
Keep
momentum in
Foodservice
Unleash our
Ingredients
engine
Investing in
operations
for the
future
Innovate to
drive our
advantage
6
Fonterra Interim Report 2025ContentsChair & CEOProgress Interim Financial StatementsNon-GAAP MeasuresDirectoryGlossaryOur Strategy

Financial Overview
Increased milk flows on-farm and strong
demand across all three product channels
have enabled the Co-operative to deliver
an improved operating profit for the first
six months of FY25 and a fully imputed
interim dividend of 22 cents
The Co-op’s net profit is $729 million for the first six
months of FY25, up $55 million on the prior comparable
period due to improved operating profit and lower interest
costs, partially offset by a higher tax expense. The increase
in net profit is alongside a higher forecast Farmgate Milk
Price for the 2024/25 season, with a midpoint of $10.00
per kgMS.
Adjusting for non-controlling interests, earnings per share
attributable to equity holders is 44 cents. The Board has
declared a fully imputed interim dividend of 22 cents per
share, made possible by the earnings momentum and
optionality created by Fonterra’s strong balance sheet in
the first six months of FY25. The dividend payment date is
8 April 2025.
Operating profit was $1,107 million, $154 million up on the
prior comparable period.
–Ingredients channel operating profit of $696 million
up $229 million, reflecting improved margins and
product mix. Refer to Unleash our Ingredients engine
for further information.
–Foodservice channel operating profit of $230 million
down $112 million, cycling record growth in the prior
period. Sales volume growth has continued in the first
six months, with higher input costs impacting gross
margins. Refer to Keep momentum in Foodservice for
further information.
FY25 Interim dividend fully imputed:
22cents
up 7 cents
–Consumer channel operating profit of $173 million down
$4 million, with good volume growth and gross margin
offset by higher operating expenses as we prepare
the business for sale. Refer to Progressing Consumer
for further information.
Operational expenses of $1,208 million are in line with the
last comparable period. Costs from continuing operations
increased $99 million mainly due to the increased investment
in upgrading our Enterprise Resource Planning (ERP)
system as well as the costs associated with the divestment
of the Consumer business, offset by no expenses from
discontinued operations which included DPA Brazil last year.
Capital invested for the period was $304 million. The Co-op
is forecast to invest slightly over $1 billion for the full year.
For further information refer to the Investing in operations
for the future section.
Net debt was $5.5 billion, up $1.3 billion mainly due to the
Co-op using its balance sheet strength to pay its farmer
owners sooner for milk collected.
Outlook
Fonterra’s FY25 full year forecast earnings guidance is
55-75 cents per share, reflecting the momentum in the
Ingredients business and resilience in the Foodservice and
Consumer channels on the back of higher input costs.
Progress on Strategy
Deliver strongest farmer offering
–Updated the Co-operative Difference framework.
–Optimised Advance Rate schedule for current season.
Unleash our Ingredients engine
–Invested $75M to grow protein capacity at Studholme.
–Increased allocation of solids to our Non-Reference portfolio.
Keep momentum in Foodservice
–Invested $150M to build a new UHT cream plant at Edendale.
–Allocated more solids to Foodservice.
Invest in operations for the future
–Upgrading our Enterprise Resource Planning (ERP) system
to build efficiency.
–Invested in a new coolstore at Whareroa to build further
supply chain resilience.
Build on our sustainability position
–Released the 2nd edition of the Co-op’s Climate Roadmap.
–Announced three decarbonisation initiatives at
Clandeboye, Whareroa and Edgecumbe.
Innovate to drive our advantage
–Launched Anchor Easy Bakery UHT cream, targeting
China’s mid-tier cities.
–Opened our sixth Application Centre in Greater China
at Wuhan.
7
Fonterra Interim Report 2025ContentsChair & CEOOur StrategyInterim Financial StatementsNon-GAAP MeasuresDirectoryGlossaryProgress
IngredientsFoodserviceOn-farmConsumer Operations SustainabilityInnovation
Overview

Fonterra’s strategy is focused on growing end-to-end
value for farmer shareholders. This starts with providing
the strongest farmer offering, that helps de-risk farming
by providing the highest sustainable milk price enabled by
efficient collection and processing, providing additional
returns from earnings, increasing farmer support and more.
The Co-op is currently forecasting its highest
1
Farmgate
Milk Price with a mid-point of $10.00 per kgMS for the
2024/25 season. In addition, Fonterra’s underlying balance
sheet strength meant the Co-op was also able to optimise
the Advance Rate Schedule during the first half of the
2024/25 season. These changes were designed to get
cash to farmers sooner and included an increase in the
December paid January payment from 75% to 85%.
Fonterra’s milk collections for the season are forecast to
be 1,510 million kgMS with collections of 1,048 million
kgMS as at 31 January due to favourable pasture
conditions across the North Island and parts of the
South Island. Supplying farms are down on the prior year
due to increased competition in the central North Island
and ongoing land use change. This will put pressure on
our target market share for the 2025 season. We are
committed to maintaining our market share, and there
is a solid pipeline of new farms set to supply the Co-op
next season, particularly in the South Island.
The Co-op continues to look for innovative ways to
support its farmer owners and in February we announced
new funding designed to build a stronger Co-operative
and continue to grow value for shareholders through
helping farmers reduce on-farm emissions. Beginning on
1 June 2025, Fonterra will introduce a payment for farms
that achieve certain emissions-related criteria as part
of updates to the Co-operative Difference framework.
Meanwhile, new incentives that benefit farmers will be
funded through separate agreements with Mars and
Nestlé. In November 2024, the Co-op ran a series of
meetings looking at practical ways farmers could make
efficiency gains that benefit their farm’s bottom line. We
also launched the On-Farm Efficiency Hub the same month,
providing information to help make gains in productivity
and profitability – while helping boost sustainability.
Deliver strongest
farmer offering
Work alongside farmers to help drive
on-farm productivity and profitability
Forecast milk price mid-point
$10.00per kgMS
Season to date collections
1,048m kgMS
up 3.6%
1 On a nominal basis.
kgMS collected (million)
Milk collections market share
2
Average collected per farm (thousand kgMS)
Average farms
3
1,539
1,478
1,480
1,471
1,510
Forecast
8,997
8,841
8,637
8,410
8,200
20252024202320222021
171
167
172
175
184
8,997
8,841
8,637
8,410
8,200
79.1%
79.0%79.0%
78.1%
~78%
Fonterra supplier base and milk collection
Full season figures
2 Forecast milk collections market share for FY25.
3 Average number of farms supplying milk for the season.
Chris & Andrew, Canterbury
8
Fonterra Interim Report 2025ContentsChair & CEOOur StrategyInterim Financial StatementsNon-GAAP MeasuresDirectoryGlossaryProgress
IngredientsFoodserviceOverviewConsumer Operations SustainabilityInnovation
On-farm

Unleash our
Ingredients engine
Deepen our position as a world-leading
provider of high-value dairy ingredients,
to grow both the Farmgate Milk Price
and earnings
Our Ingredients channel had a strong first six months with
operating profit up $229 million to $696 million reflecting
improved margins and product mix.
In line with the Co-op’s strategic objectives, the Co-op
is on target to allocate 53% of milk solids to the reference
product portfolio within the Ingredients channel,
compared to 55% the previous year. The reduction reflects
an increased allocation to our higher margin Non-Reference
Ingredients and Foodservice products. The Co-op is on
track to allocate 23% of milk solids to the Non-Reference
product portfolio.
The Co-op’s Ingredients channel currently supplies more
than 1,000 customers across 120 countries and has been
focused on consistently building demand for high-returning
products. An example of this has been the development of
our functional protein range. This has been a key platform
behind strong results in higher-value markets such as
Europe, the USA, Japan and China. To cater to growing
demand and strengthen our Ingredients channel offering,
the Co-op is continuing to invest in capability, for example,
the previously announced expansion at our Studholme
site, transforming this factory into a hub for high-value
protein production.
Ingredients Return on Capital
11.0%
from 12.8%
Ingredients operating profit
$696m
up 49.0%
54%
30%
1,177
1,105
1,196
1,160
1,143
85%
84%
2027202620252024202320222021
58.0%5 7. 2 %58.9%55.3%53.2%56%54%
21.5%
22.0%
21.5%
23.0%
23.2%
79.5%
79.2%
80.4%
78.3%
76.4%
29%
30%
ReferenceNon-ReferencePlannedStrategic targets
million kgMS
Higher milk
allocations
Higher milk allocations in 2026 and 2027 due to redirection of milk solids
into Ingredients channel following the proposed Consumer divestment
Improved mix as solids allocated to high value ingredients
Full financial year figures
Case study: Expanding production
of high-demand ingredients

In August 2024, Fonterra announced a $75 million
investment at its Studholme site to create a hub
for high-value functional proteins. Studholme
was chosen for its size, modern facilities, and
growth potential. With the high-protein dairy
market set to grow by nearly USD10 billion in four
years, this investment aligns with the Co-op’s
strategy to grow value for customers who rely on
its high-performance dairy proteins for premium
applications like medical and sports nutrition.
Construction is well underway with the first
product set to come off the line in 2026. Following
completion, the investment will unlock capacity in
our Non-Reference portfolio to support the Co-op’s
strategic priorities.
Campbell & Andrew, Southland
9
Fonterra Interim Report 2025ContentsChair & CEOOur StrategyInterim Financial StatementsNon-GAAP MeasuresDirectoryGlossaryProgress
FoodserviceOn-farmOverviewConsumer Operations SustainabilityInnovationIngredients

Our Foodservice channel delivered sales volume growth
of 8.3% for the first six months due to strong demand in
our cheese portfolio, particularly our Individually Quick
Frozen (IQF) mozzarella in China and Southeast Asia.
Gross margins in the first half were impacted by higher
input costs and operating profit was down $112 million
on the prior comparable period, which was a record result,
to $230 million. Key markets continue to strengthen,
supporting improved pricing and ongoing volume growth
while remaining in competitive market conditions.
The growth in UHT cream sales in major markets like
China is the key driver for the planned increased allocation
of milk solids to the Foodservice channel from 210 million
kgMS to 235 million kgMS.
To maintain this momentum, we are building additional
capacity to support demand in our UHT cream category.
We announced in December 2024 that we would invest
$150 million into the expansion of our Edendale site. Works
are already underway, with the first product set to roll off
the line in August 2026. Initially delivering over 50 million
litres of UHT cream annually, which broadly equates to
around 20 million kgMS in additional capacity, with plans
to more than double this by 2030.
It is expected that the expanded Edendale site will make
products similar to Fonterra’s new Anchor Easy Bakery
cream, launched at the China International Import Expo
(CIIE) in Shanghai in November 2024.
Made with 100% New Zealand dairy, the Anchor Easy
Bakery cream is designed for the mid-tier market in
China where UHT cream demand continues to increase,
driven largely by a growing middle class, urbanisation
and increased awareness of the nutritional value of dairy.
Keep momentum
in Foodservice
Expand our successful Foodservice
business in and beyond China to
grow earnings
Foodservice operating profit
$230m
down 32.7%
Foodservice Return on Capital
11.7%
from 23.6%
180
183
195
210
235
2027202620252024202320222021
12.1%
13.1%13.1%
14.2%
15.7%
15%
16%
million kgMS
Strategic targetsPlanned
Continued Foodservice growth driving
higher milk allocation
Full financial year figures
Singapore, Southeast Asia
10
Fonterra Interim Report 2025ContentsChair & CEOOur StrategyInterim Financial StatementsNon-GAAP MeasuresDirectoryGlossaryProgress
IngredientsOn-farmOverviewConsumer Operations SustainabilityInnovationFoodservice

Progressing
Consumer
Our Consumer channel performed well for the first six
months with sales volume growth of 8.5% due to higher
South Asia powders and FBNZ butter volumes. Proactive
revenue management initiatives mean that gross
margins were maintained despite the higher cost of milk.
However, operating profit was largely flat at $173 million
as operating expenses included costs of preparing the
Consumer business for a potential divestment.
The Co-op is on track to increase its allocation of milk
solids by 7 million kgMS to 118 million kgMS, or just under
8% of total solids, in line with our strategic targets. Strong
demand from South Asia and China along with the stable
margins will be the key drivers for the increased allocation.
Consumer Return on Capital
5.8%
from 4.7%
Consumer operating profit
$173m
down 2.3%
Update on potential divestment of Consumer
and associated businesses
In November 2024, Fonterra confirmed it is pursuing
a divestment of its global Consumer and associated
businesses.
The decision to pursue a divestment is grounded
in an understanding of where Fonterra best creates
value for farmer shareholders and unit holders,
which is through its Ingredients and Foodservice
businesses.
Fonterra has identified both a trade sale and initial
public offering (IPO) as divestment options and is
currently pursuing both.
Since November 2024, Fonterra has:
– Engaged with potential trade sale purchasers;
– Announced Mainland Group as the corporate
brand if an IPO is pursued;
– Named René Dedoncker as CEO-elect and
Paul Victor as CFO-elect for Mainland Group; and
– Conducted non-deal investor roadshow meetings
for Mainland Group.
Fonterra’s chosen divestment option will balance:
– Maximising long term value for farmer
shareholders, including the best return on
capital invested;
– Cementing Fonterra’s competitive advantage in
Ingredients and Foodservice; and
– Expanding international channels to market for
high-quality New Zealand dairy.
A divestment remains subject to approval from
Fonterra’s farmer shareholders.
Fonterra continues to target a significant capital
return to be made to farmer shareholders and unit
holders following the divestment.
Increased milk allocation and sales through Consumer
Full financial year figures
8.4%7. 7 %6.5%7. 5 %8.0%8.4%7. 7 %6.5%7. 5 %8.0%8.4%7. 7 %6.5%7. 5 %8.0%
20252024202320222021
8.4%
7. 7 %
6.5%
7. 5 %
7. 9 %
million kgMS
Planned
124
107
97
111
118
“A divestment remains subject
to approval from Fonterra’s
farmer shareholders.”
11
Fonterra Interim Report 2025ContentsChair & CEOOur StrategyInterim Financial StatementsNon-GAAP MeasuresDirectoryGlossaryProgress
IngredientsFoodserviceOn-farmOverviewOperations SustainabilityInnovation
Consumer

Future-proofing through operational resilience and security
of energy supply remains a focus of the Co-operative, with
investments designed to create enduring assets fit for the
future alongside renewable energy solutions that support
long-term sustainability.
As the Co-op looks for ways to drive higher value for its
farmer owners, having flexible asset capabilities gives
Fonterra the ability to gear certain sites towards higher-
value Foodservice and Ingredients products. Recent
announcements include the construction of a new cool
store at Whareroa, a new proteins hub at Studholme,
and a new UHT cream plant at Edendale.
In addition, we are investing to upgrade the Co-op’s
Enterprise Resource Planning (ERP) software system to
make it fit for purpose and improve operational efficiencies.
The forecast FY25 increase in cash operating expenses
per kgMS from $1.36 to $1.45 includes 8 cents related
to the planned investment in the Co-op’s ERP upgrade.
The Co-op’s ERP software enables us to integrate our core
business processes – everything from sales and logistics
to invoicing – into one cohesive system. The spend is
forecast to peak this financial year and the project remains
on track. The upgrade will help drive efficiencies through
standardised and streamlined systems and processes.
The Co-op is also focused on improving manufacturing
processes to drive value for its farmer owners. In October
2024, the Operations Optimisation team was formed
to improve operational performance through better
integration, efficiency improvements, and implementing
strategic changes to the way we work.
We’ve also optimised our transportation network, reducing
the Co-op’s tanker fleet by nine vehicles to date in FY25.
This reduction was made possible through improved
reliability, continued benefits from automated milk vat
monitoring systems that optimise collection windows, and
strategic fleet right-sizing to match kilometres and milk
pools. This builds upon our previous efficiency initiatives
that removed 26 trucks between FY21 and FY24.
The FY25 cash manufacturing costs per kgMS are forecast
to increase by around 5 cents to $2.63 due to inflation,
one-off staff costs and incremental costs relating to a
move towards a more valuable product mix, as we move
our portfolio up the value chain towards Non-Reference
commodity products. This is forecast to be partially offset
by higher milk solid collections and efficiency gains through
performance improvement programs.
Invest in operations
for the future
An efficient manufacturing and supply
chain network that allows us to flexibly
allocate milk to the highest returning
product and sales channel
Case study: Investing in renewable
secure energy solutions
In January, Fonterra announced an investment of
$120 million into renewable energy solutions with
the installation of electrode boilers at its Whareroa
and Edgecumbe sites in the North Island. Once all
transition investments at both sites are complete
the new boilers will reduce the Co-operative’s
annual carbon emissions by 79,000 tonnes – the
equivalent of removing nearly 33,000 cars off
New Zealand roads – reducing annual gas usage
by 4.3PJ and 1 PJ respectively, and further support
energy security.
202720262025202420232022
2.3
2.63
2.58
2.63
2.622.64
PlannedStrategic targets
Manufacturing cost per kgMS
Cash opex per kgMS
1
1.17
1.3
1.36
1.45
1.12
1.05
Cash expenses ($/kgMS)
Full financial year figures
Note: data is on a full year forecast basis
1 Only YTD costs related to the proposed Consumer divestment are included in FY25
full year forecast as the total cost will vary based on the divestment outcome.
2 Comparative information has been re-presented for consistency with the current period.
Edendale Manufacturing Site, Southland
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IngredientsFoodserviceOn-farmOverviewConsumer SustainabilityInnovation
Operations

The Co-operative remains committed to its
decarbonisation pathway, transitioning from fossil fuels
to achieve its ambition of net zero emissions by 2050
while balancing energy security, capital investment, and
operational needs. A substantial portion of total capital
expenditure is allocated to sustainability related projects
in our Strategic Plan with around 30% of the essential
capital expenditure earmarked for this purpose in FY25.
In November 2024, the Co-op released the second
edition of its Climate Roadmap.
Progress towards targets includes:
–A 3.1% reduction in Scope 1 and 3 FLAG GHG emissions
from a 2018 baseline. This is against a target of a 30%
reduction per tonne of Fat and Protein Corrected Milk
by 2030.
–A 21.2% reduction in absolute Scope 1 and 2 GHG
emissions from a 2018 baseline. This is against an
absolute target of a 50.4% reduction by 2030.
The Co-op has made further progress towards
transitioning from coal to renewable energy with the
closure of the last coal boiler at our Waitoa site in
November 2024, meaning that Fonterra is officially out
of coal in its North Island manufacturing. With only five
sites left in the South Island to transition off coal - Takaka,
Darfield, Clandeboye, Studholme and Edendale - plans
are underway to secure renewable solutions so that
the Co-op both secures energy supply and meets its
commitment to be out of coal by 2037.
The Co-op’s largest decarbonisation project to date was
announced in December with an investment of $64 million
to convert two coal boilers to wood pellets at Clandeboye,
cutting the Co-op’s overall manufacturing emissions by
an estimated nine per cent and 155,000 tonnes of CO
2
e.
The investment follows successful boiler conversions
at Te Awamutu and Hautapu with the new Clandeboye
boilers scheduled to be operational by September 2025.
Build on our
sustainability
position
Further improve the Co-op’s
sustainability credentials
Reduction in absolute Scope 1 and 2 GHG emissions by 50.4%
by FY2030 (from a FY2018 base year)
21.2%
Reduction in Scope 1 and Scope 3 FLAG GHG emissions from
dairy by 30.0% per tonne of fat-and-protein-corrected milk
by FY2030 (from a FY2018 base year)
3.1%
*
2027202620252024202320222021
466534621558
79
63
608
53
30
617
47
79
747
56
106
720
~1,0001,000
980
Other capital invested
Growth capital expenditure
PlannedStrategic targets
Essential capital expenditure
70%
20%
10%
Capital invested ($million)
Full financial year figures
Andrew & Michael, Southland
*
as at the end of FY2024. This metric is only able to be updated annually
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IngredientsFoodserviceOn-farmOverviewConsumer Operations Innovation
Sustainability

Innovation is essential to predict and respond to consumer
and customer needs while helping address complex
operational challenges, supporting the Co-op’s six strategic
choices. Innovation comes to life in-market alongside our
customers to create new product solutions and through
research and development at the Fonterra Research and
Development Centre (FRDC).
In addition, the Ki Tua Fund is an important vehicle for
innovation that enables Fonterra to access new technology,
capabilities and business models across the rapidly
changing food, science and technology landscape.
More broadly, innovation supports the Co-op’s entire
value chain from on-farm, operations right through to the
end consumer. Two particular highlights this half were the
launch of two new Foodservice products in Fonterra’s high
value cream category, Anchor Easy Bakery (AEB) UHT cream
and Infiniti cream, a new product launched in Singapore
that is in the early stages of commercial trials.
AEB was ideated and developed at the FRDC. This product
had a swift journey to market, achieved in seven months
thanks to broad collaboration across the Co-op. This cream
is targeted at Foodservice customers in China’s mid-tier
cities, one of the fastest growing segments in this market.
Fonterra works closely with its customers in-market and
in the first half of FY25 we opened our sixth application
centre in China. The new facility in Wuhan, central
China, adds further depth to our presence in this critical
market. The newly opened facility will provide a platform
to explore the use of Fonterra’s dairy products across
various foodservice channels, including bakery, dining and
beverage. Fonterra’s other application centres in China are
in Beijing, Shanghai, Guangzhou, Chengdu and Shenzhen.
Innovate to drive
our advantage
Use science and technology to solve
the Co-op’s challenges and build on
our competitive advantages
Yiying & Olivia, Palmerston North
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IngredientsFoodserviceOn-farmOverviewConsumer Operations Sustainability
Innovation

Independent Auditor’s Review Report16
Statement of Financial Position18
Statement of Profit or Loss
and Other Comprehensive Income19
Statement of Cash Flows 20
Statement of Changes in Equity21
Basis of Preparation22
Notes to the Interim Financial Statements 24
Interim
Financial
Statements
Edendale Manufacturing Site, Southland
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Basis for conclusion
We conducted our review of the interim consolidated financial statements in accordance
with NZ SRE 2410 (Revised) Review of Financial Statements Performed by the Independent
Auditor of the Entity (NZ SRE 2410 (Revised)). Our responsibilities are further described
in the Auditor’s Responsibilities for the Review of the interim consolidated financial
statements section of our report.
We are independent of Fonterra Co-operative Group Limited (Group) in accordance with
the relevant ethical requirements in New Zealand relating to the audit of the annual
financial statements and we have fulfilled our other ethical responsibilities in accordance
with these ethical requirements.
Our firm has provided other services to the Group that are related to our role as the
Group’s auditor, such as assurance and agreed upon procedures services. Subject to certain
restrictions, partners and employees of our firm may also deal with the Group on normal
terms within the ordinary course of trading activities of the business of the Group. These
matters have not impaired our independence as auditor of the Group. The firm has no
other relationship with, or interest in, the Group.
Use of this Independent Auditor’s Review Report
This report is made solely to the shareholders. Our review work has been undertaken so
that we might state to the shareholders those matters we are required to state to them in
the Independent Auditor’s Review Report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the
shareholders for our review work, this report, or any of the conclusions we have formed.
Independent Auditor’s Review Report
To the shareholders of Fonterra Co-operative Group Limited
Report on the interim consolidated financial statements
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that
the interim consolidated financial statements on pages 18 to 32 do not:
i. present fairly, in all material respects, the Group’s financial position as at 31 January
2025 and its financial performance and cash flows for the six month period then
ended; and
ii. comply with New Zealand Equivalent to International Accounting Standard 34 Interim
Financial Reporting (NZ IAS 34) issued by the New Zealand Accounting Standards
Board and IAS 34 Interim Financial Reporting (IAS 34) as issued by the International
Accounting Standards Board.
We completed a review of the accompanying interim consolidated financial statements
which comprise:
–the interim consolidated statement of financial position as at 31 January 2025;
– the interim consolidated statements of comprehensive income, changes in equity
and cash flows for the six month period then ended; and
– notes, including material accounting policy information.
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Interim Financial StatementsBasis of PreparationNotes to the Interim Financial Statements Independent Auditor’s Review Report

Independent Auditor’s Review Report CONTINUED
Responsibilities of the Directors for the interim consolidated financial statements
The Directors on behalf of the Company are responsible for:
– the preparation and fair presentation of the interim consolidated financial statements
in accordance with NZ IAS 34 and IAS 34; and
– implementing necessary internal control to enable the preparation of interim
consolidated financial statements that is fairly presented and free from material
misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the interim consolidated financial
statements
Our responsibility is to express a conclusion on the interim consolidated financial
statements based on our review.
NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention
that causes us to believe that the interim consolidated financial statements, taken as a
whole, are not prepared, in all material respects, in accordance with NZ IAS 34 and IAS 34.
A review of interim consolidated financial statements prepared in accordance with NZ
SRE 2410 (Revised) is a limited assurance engagement. The auditor performs procedures,
consisting of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an
audit conducted in accordance with International Standards on Auditing (New Zealand)
and consequently does not enable us to obtain assurance that we might identify in
an audit. Accordingly, we do not express an audit opinion on the interim consolidated
financial statements.
The engagement partner on the audit resulting in this independent auditor’s review report
is Aaron Woolsey.
For and on behalf of:
KPMG
Auckland
19 March 2025
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NOTES
31 JAN 2025
UNAUDITED
31 JAN 2024
1
UNAUDITED
31 JUL 2024
1
AUDITED
ASSETS
Current assets
Cash and cash equivalents218239540
Trade and other receivables 2,4992,1222,123
Inventories7,9906,4604,405
Derivative financial instruments 247217282
Other assets 10913289
Assets held for sale–133
Total current assets11,0639,1837,442
Non-current assets
Inventories593953
Property, plant and equipment46,3946,2836,400
Intangible assets1,7791,8131,785
Deferred tax assets205181208
Derivative financial instruments386347344
Other assets 462385447
Total non-current assets9,2859,0489,237
Tot al a s s e t s20,34818,23116,679
Statement of Financial Position
AS AT 31 JANUARY
($ MILLION)
NOTES
31 JAN 2025
UNAUDITED
31 JAN 2024
1
UNAUDITED
31 JUL 2024
1
AUDITED
LIABILITIES
Current liabilities
Bank overdraft1492642
Borrowings41,6441,2441,032
Trade and other payables 45,0374,7904,196
Tax payable322178107
Derivative financial instruments663124362
Other liabilities136157108
Liabilities held for sale–6–
Total current liabilities 7,9516,5255,847
Non-current liabilities
Borrowings44,1633,3712,356
Derivative financial instruments 1324590
Deferred tax liabilities32145135
Other liabilities786576
Total non-current liabilities 4,4053,6262,657
Total liabilities12,35610,1518,504
Net assets7,9928,0808,175
EQUITY
Subscribed equity35,0645,0735,064
Retained earnings3,0252,7652,960
Foreign currency translation reserve18657127
Hedge reserves(375)103(72)
Other reserves101620
Non-controlling interests826676
Total equity7,9928,0808,175
1 Comparative information includes re-presentations for consistency with the current period.
The Board approved and authorised for issue these Interim Financial Statements on 19 March 2025.
For and on behalf of the Board:
Peter McBride Bruce Hassall
Chairman Director
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Statement of Profit or Loss and Other Comprehensive Income
FOR THE SIX MONTHS ENDED 31 JANUARY
($ MILLION)
NOTES
31 JAN 2025
UNAUDITED
31 JAN 2024
1
UNAUDITED
Revenue from sale of goods112,59211,085
Cost of goods sold
New Zealand sourced cost of milk(9,784)(7,239)
Non-New Zealand sourced cost of milk(603)(620)
Other collection and manufacturing costs(3,562)(3,343)
Increase in inventories3,5852,153
Total cost of goods sold
2
2(10,364)(9,049)
Gross profit2,2282,036
Other operating income6244
Foreign exchange gains1715
Operating expenses2(1,208)(1,109)
Net finance costs(85)(82)
Profit before tax from continuing operations1,014904
Tax expense4(293)(190)
Profit after tax from continuing operations721714
Profit/(loss) after tax from discontinued operations8(40)
Profit after tax729674
Cash flow hedges and other costs of hedging, net of tax(303)60
Net investment hedges and translation of foreign operations, net of tax59(18)
Foreign currency translation reserve losses transferred to profit or loss–68
Other movements in reserves(15)2
Total items that may be reclassified subsequently to profit or loss(259)112
Total items that will not be reclassified subsequently to profit or loss8(1)
Total other comprehensive (expense)/income(251)111
Total comprehensive income478785
Earnings per share attributed to equity holders of the Co-operative
Basic and diluted earnings per share from continuing operations ($)0.440.43
Basic and diluted earnings/(loss) per share from discontinued operations ($)–(0.03)
Total basic and diluted earnings per share ($)0.440.40
1 Comparative information includes re-presentations for consistency with the current period.
2 This Statement is presented on a functional basis. The shaded information provides an additional breakdown of Cost of goods sold by nature of expense.
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Statement of Cash Flows
FOR THE SIX MONTHS ENDED 31 JANUARY
($ MILLION)
NOTES
31 JAN 2025
UNAUDITED
31 JAN 2024
1
UNAUDITED
Cash flows from operating activities
Profit after tax729674
Adjustments for:
Net finance costs8589
Tax expense293190
Depreciation and amortisation317307
(Gain)/loss on sale of businesses (8)66
Foreign exchange losses/(gains)136(21)
Other(3)10
Total adjustments820641
Increase in working capital and other operating activities4(3,319)(1,355)
Net taxes paid(54)(44)
Net cash flows from operating activities(1,824)(84)
Cash flows from investing activities
Acquisition of property, plant and equipment (241)(233)
Acquisition of intangible assets(16)(56)
Acquisition of investments(15)(12)
Other cash outflows–(32)
Other cash inflows2720
Net cash flows from investing activities(245)(313)
NOTES
31 JAN 2025
UNAUDITED
31 JAN 2024
1
UNAUDITED
Cash flows from financing activities
Proceeds from borrowings4,7922,386
Other cash inflows–8
Repayment of borrowings(2,409)(1,928)
Capital return paid–(804)
Dividends paid (661)(674)
Interest paid(93)(125)
Net cash flows from financing activities1,629(1,137)
Net decrease in cash(440)(1,534)
Opening cash 4981,750
Effect of exchange rate changes11(3)
Closing cash 69213
Reconciliation of closing cash to the Statement of
Financial Position
Cash and cash equivalents218239
Bank overdraft(149)(26)
Closing cash69213
1 Comparative information includes re-presentations for consistency with the current period.
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Basis of PreparationIndependent Auditor’s Review ReportNotes to the Interim Financial Statements Interim Financial Statements

Statement of Changes in Equity
FOR THE SIX MONTHS ENDED 31 JANUARY
($ MILLION)
ATTRIBUTABLE TO EQUITY HOLDERS OF THE CO-OPERATIVE
SUBSCRIBED
EQUITY
RE TAINED
EARNINGS
FOREIGN
CURRENCY
TRANSLATION
RESERVE
1
HEDGE
RESERVES
1
OTHER
RESERVES
1
NON-
CONTROLLING
INTERESTS
TOTAL
EQUITY
As at 1 August 20245,0642,960127(72)20768,175
Profit after tax–708–––21729
Other comprehensive income/(expense)––59(303)(10)3(251)
Total comprehensive income/(expense)–70859(303)(10)24478
Transactions with equity holders:
Dividends paid–(643)––– (18) (661)
As at 31 January 2025 (unaudited)5,0643,025186(375)10827,992
As at 1 August 20235,0732,7747439627,968
Profit after tax–639–––35674
Transfer between reserves–(5)––5––
Other comprehensive income/(expense)––50602(1)111
Total comprehensive income–6345060734785
Transactions with equity holders:
Dividends paid–(643)–––(31)(674)
Dairy Partners Americas Brasil Limitada capital contributions received–––––88
Derecognition of non-controlling interest in Dairy Partners Americas Brasil Limitada –––––(7)(7)
As at 31 January 2024 (unaudited)5,0732,7655710316668,080
1 Comparative information includes re-presentations for consistency with the current period.
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Basis of Preparation
FOR THE SIX MONTHS ENDED 31 JANUARY 2025
AT A GLANCE
The basis of preparation describes changes in material accounting policies and significant
judgements and estimates, in addition to providing explanatory comments on the seasonality of
Fonterra’s operations.
a) General information
Fonterra Co-operative Group Limited (Fonterra, the Company or the Co-operative) is incorporated and
domiciled in New Zealand. Fonterra is registered under the Companies Act 1993 and the Co-operative
Companies Act 1996, and is an FMC Reporting Entity under the Financial Markets Conduct Act 2013.
Fonterra is also required to comply with the Dairy Industry Restructuring Act 2001 (DIRA).
b) Basis of preparation
These Interim Financial Statements comprise Fonterra and its subsidiaries (together referred to as the
Group) and the Group’s interests in its equity accounted investments.
These unaudited Interim Financial Statements:
–Comply with International Accounting Standard 34 Interim Financial Reporting;
–Comply with New Zealand Equivalent to International Accounting Standard 34 Interim Financial
Reporting;
–Have been prepared in accordance with Generally Accepted Accounting Practice (GAAP) applicable to
for-profit entities;
–Are presented in New Zealand Dollars ($ or NZD), which is Fonterra’s functional currency, and rounded
to the nearest million, except where otherwise stated; and
–Do not include all the information and disclosures required in the Annual Financial Statements, and
should be read in conjunction with the Group’s Financial Statements for the year ended 31 July 2024.
The Group’s operations are seasonal due to the profile of milk production in New Zealand. Milk production,
and therefore the Group’s milk collections and production volumes are higher in the New Zealand
Spring (October and November). Consequently, the amount owing to suppliers, inventory balances
and borrowings are higher at the 31 January interim reporting dates compared to the 31 July year-end
reporting dates. This reflects the higher cash outflows required to support the business operations in
the first six months of the financial year. Due to the seasonality of the Group’s operations, additional
comparative information for the Statement of Financial Position and associated Notes to the Interim
Financial Statements has been presented in these Interim Financial Statements.
Re-presentations
At each balance date the Group reassesses the aggregation and disaggregation of individual line
items. Reserves have been disaggregated, and the following changes have been made for consistency
with re-presentations made to the Group’s Financial Statements for the year ended 31 July 2024 (and
comparative information has been re-presented for consistency with the current period):
–Tax payable is presented separately from other current liabilities (31 January 2024: $178 million) and
deferred tax liabilities are presented separately from other non-current liabilities (31 January 2024:
$145 million); and
–Emissions units held for compliance purposes that are expected to be consumed in production
beyond one year from balance date are presented as non-current inventories, separately from current
inventories (31 January 2024: $39 million).
In operating activities within the Statement of Cash Flows, the 31 January 2024 comparative amount of
other adjustments and of working capital and other operating activities have decreased by $47 million, for
consistency with the current period’s presentation of emission units held for compliance purposes.
c) Material accounting policies
The accounting policies applied in the preparation of these Interim Financial Statements are consistent
with those applied in the Group’s Financial Statements for the year ended 31 July 2024.
d) Significant judgements and estimates
In the process of applying the Group’s accounting policies and the application of accounting standards, a
number of judgements and estimates have been made. Sources of significant judgement and estimation
uncertainty in preparing these Interim Financial Statements were consistent with those disclosed in the
Group’s Financial Statements for the year ended 31 July 2024.
Forecast Farmgate Milk Price
The Farmgate Milk Price is the average price paid by Fonterra in a season, which is the 12 months ending
31 May, for each kilogram of milk solids (kgMS) supplied by farmer shareholders under Fonterra’s standard
terms of supply. The Farmgate Milk Price for a season is finalised after the end of that milk season. Global
dairy commodity prices that inform the Farmgate Milk Price revenue are the most significant driver of the
level of each season’s Farmgate Milk Price.
Within the forecast Farmgate Milk Price, the majority of the milk sourced up until 31 January 2025
is contracted for sale at hedged NZD/USD exchange rates. This means that the Farmgate Milk Price
revenue that would be earned from the milk sourced during the six months ended 31 January 2025 is
largely known.
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Basis of Preparation CONTINUED
FOR THE SIX MONTHS ENDED 31 JANUARY 2025
The full season forecast Farmgate Milk Price remains uncertain. This is because the Farmgate Milk Price
revenue that will be earned from milk supplied during the remainder of the milk season ending 31 May
2025 is impacted by future global dairy commodity prices. Future global dairy commodity prices in USD
are uncertain as they are influenced by global supply and demand dynamics, and their conversion to
NZD is uncertain because the conversion of these USD selling prices to NZD depends on the NZD/USD
exchange rate and associated hedging.
e) Divestment of the extended Consumer businesses
In May 2024, the Group announced its intention to explore full or partial divestment options for some or
all of its global Consumer business, as well as its integrated businesses Fonterra Oceania and Fonterra
Sri Lanka.
The Group has completed its detailed scoping and in November 2024 announced it will proceed with
a sale process for these businesses, pursuing both a trade sale and an Initial Public Offering (IPO)
divestment pathway. A final decision on the divestment pathway will be based on several factors including
optimal long-term value, and the Group will seek support for the divestment from farmer shareholders
prior to a sale.
As of 31 January 2025, these businesses do not meet the criteria to be classified as held for sale or
discontinued operations.
f) Climate-related uncertainties
Climate change, Fonterra’s response, and how farm shareholders, customers, regulators and others also
respond may have significant impacts on the recognised amounts of assets and liabilities.
The Group has a number of climate-related targets, including:
–Reducing its global absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 50.4% by financial year
(FY) 2030 (from a FY2018 base year); and
–Reducing its Scope 1 and 3 Forest, Land and Agriculture (FLAG) GHG emissions from dairy by 30% per
tonne of fat and protein corrected milk (FPCM) by FY2030 (from a FY2018 baseline).
The Group is committed to exiting coal by FY2037.
While the effects of climate change are a continuing source of uncertainty, climate-related risks and
opportunities have been assessed as not having a material impact on these Interim Financial Statements.
d) Significant judgements and estimates continued
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Notes to the Interim Financial Statements
FOR THE SIX MONTHS ENDED 31 JANUARY 2025
($ MILLION)
1 Segment reporting and revenue25
2 Expenses28
3 Subscribed equity instruments29
4 Other disclosures30
Tomika & Tiaki-Jack, Bay of Plenty
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Notes to the Interim Financial Statements CONTINUED
FOR THE SIX MONTHS ENDED 31 JANUARY 2025
($ MILLION)
1 Segment reporting and revenue
AT A GLANCE
This note provides information on the Group’s organisational structure and segment performance,
from continuing operations, together with information on the Group’s external revenue. The
Group’s reportable segments are Global Markets - Ingredients, Global Markets - Consumer and
Foodservice, Greater China, and Core Operations.
Segment information provided in this note reflects the Group’s performance from continuing operations
only. For the six months ended 31 January 2024 the financial performance of the Brazil consumer and
foodservice businesses was recognised in profit after tax from discontinued operations and it has been
excluded from the disclosures in this note.
Operating segments reflect the way financial information is regularly reviewed by the Fonterra
Management Team (FMT). The FMT is considered to be the Chief Operating Decision Maker (CODM).
The FMT consists of the Group’s Chief Executive Officer (CEO), Chief Financial Officer, Chief Operating
Officer, the President Global Markets - Ingredients, the Managing Director Global Markets - Consumer
and Foodservice, the CEO Greater China, the Chief Innovation and Brand Officer, the Managing Director
People and Culture and the Managing Director Co-operative Affairs.
The measure of profit or loss used by the FMT to evaluate the underlying performance of operating
segments is earnings before interest and tax (EBIT).
In June 2024, Fonterra announced changes to its FMT, following the announcement in May 2024 of a step-
change in its strategic direction. Two new FMT roles were created effective 1 August 2024, the President
Global Markets - Ingredients and the Managing Director Global Markets - Consumer and Foodservice.
These replaced the CEO Global Markets FMT role. Accordingly, the Global Markets business unit was
split into two business units effective 1 August 2024, Global Markets - Ingredients and Global Markets -
Consumer and Foodservice. In addition, the Managing Director Strategy and Optimisation FMT role was
disestablished effective 1 October 2024.
The Group’s operating model and the way financial information is presented to the FMT has been updated
to align to this new organisational structure. This is now based around the three customer-facing regional
business units, Global Markets - Ingredients, Global Markets - Consumer and Foodservice and Greater
China; and Core Operations which comprises:
–Chief Operating Office (COO) which includes New Zealand milk collection, processing operations and
assets, and Supply Chain;
–The physical and financial commodity portfolio management function which includes optimising
the New Zealand milk pool, product pricing support for the regions, managing Fonterra’s dairy and
non-dairy price risk and providing price risk management tools to both our customers and farmer
shareholders; and
–Fonterra Farm Source™ retail stores.
Corporate Services including Innovation and Brand, Group IT and Co-operative Affairs are allocated
to Global Markets - Ingredients, Global Markets - Consumer and Foodservice, Greater China and Core
Operations.
The operating model forms the basis for the Group’s operating segments.
The Group has identified its reportable segments based on a number of factors, including how the CODM
makes decisions about resource allocations and assesses performance. The Group has determined that
its reportable segments are Global Markets - Ingredients, Global Markets - Consumer and Foodservice,
Greater China and Core Operations. Comparative information within this note has been restated to reflect
the change in the Group’s reportable segments.
REPORTABLE SEGMENTSDESCRIPTION
Global Markets -
Ingredients
Represents the Ingredients, Foodservice and Consumer channels in the
Atlantic and North Asia; and Asia Pacific Ingredients regions.
Global Markets - Consumer
and Foodservice
Represents the Ingredients, Foodservice and Consumer channels in the
Middle East and Africa, Oceania, South and South-East Asia regions.
Greater ChinaRepresents the Ingredients, Foodservice and Consumer channels in
Greater China.
Core OperationsRepresents COO, the physical and financial commodity portfolio
management function, and Fonterra Farm Source™ retail stores.
The performance of large multinational customers are reported within the reportable segment that they
are managed by. This can differ from the geographical region of the destination of goods sold.
The performance of the Group’s reportable segments includes transactions between the segments for
the purchase and sale of goods, which are eliminated at the total Group level. Transactions between
Core Operations and the other reportable segments are based on transfer pricing that is indexed where
possible to observable market pricing (such as Global Dairy Trade prices). For products with specifications
that vary from those with observable market pricing, incremental manufacturing and services costs are
included in the transfer price.
External revenue presented in the following tables is determined in accordance with the accounting
policy, estimates and judgements consistent with those disclosed in the Group’s Financial Statements
for the year ended 31 July 2024. Core Operations includes external revenue together with adjustments
to reflect that it acts as an agent for other segments, and the volatility associated with the Group’s sales
hedging activities.
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Interim Financial StatementsBasis of PreparationIndependent Auditor’s Review ReportNotes to the Interim Financial Statements

Notes to the Interim Financial Statements CONTINUED
FOR THE SIX MONTHS ENDED 31 JANUARY 2025
($ MILLION)
1 Segment reporting and revenue continued
SIX MONTHS ENDED 31 JANUARY 2025 (UNAUDITED)
GLOBAL MARKETS –
INGREDIENTS
GLOBAL MARKETS –
CONSUMER AND
FOODSERVICEGREATER CHINA
CORE
OPERATIONSELIMINATIONSTOTAL
CONTINUING OPERATIONS
Revenue from sale of goods5,3194,0983,9429,448(10,215)12,592
Cost of goods sold(4,866)(3,428)(3,513)(8,772)10,215(10,364)
Gross profit453670429676–2,228
Operating expenses(167)(420)(180)(441)–(1,208)
Other
1
2917132–79
EBIT315267250267–1,099
Other segment information:
– Inter-segment revenue341339179,518(10,215)–
– External revenue
Ingredients channel revenue4,6521,2512,13623–8,062
Foodservice channel revenue2367521,524(62)–2,450
Consumer channel revenue901,756265(31)–2,080
Total external revenue4,9783,7593,925(70)–12,592
– Depreciation and amortisation(19)(62)(13)(223)–(317)
– Share of profit of equity accounted investees7––––7
1 Comprises other operating income (inclusive of the share of profit of equity accounted investees) and foreign exchange gains/(losses).

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Interim Financial StatementsBasis of PreparationIndependent Auditor’s Review ReportNotes to the Interim Financial Statements

Notes to the Interim Financial Statements CONTINUED
FOR THE SIX MONTHS ENDED 31 JANUARY 2025
($ MILLION)
1 Segment reporting and revenue continued
SIX MONTHS ENDED 31 JANUARY 2024 (UNAUDITED AND RESTATED)
GLOBAL MARKETS –
INGREDIENTS
GLOBAL MARKETS –
CONSUMER AND
FOODSERVICEGREATER CHINA
CORE
OPERATIONSELIMINATIONSTOTAL
CONTINUING OPERATIONS
Revenue from sale of goods 4,7353,7753,1577,943 (8,525)11,085
Cost of goods sold(4,315) (3,151)(2,697)(7,411)8,525 (9,049)
Gross profit 420624460532–2,036
Operating expenses(159)(399)(164) (387)–(1,109)
Other
1
16202 21–59
EBIT277 245298166–986
Other segment information:
– Inter-segment revenue 270248167,991 (8,525)–
– External revenue
Ingredients channel revenue4,1911,2191,64423–7,077
Foodservice channel revenue2036961,277(42)– 2,134
Consumer channel revenue711,612220(29)– 1,874
Total external revenue4,4653,5273,141(48)–11,085
– Depreciation and amortisation(17)(61)(11)(218)–(307)
– Share of profit/(loss) of equity accounted investees5(1)– (4)––
1 Comprises other operating income (inclusive of the share of profit of equity accounted investees) and foreign exchange gains/(losses).

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Fonterra Interim Report 2025ContentsChair & CEOOur StrategyProgress Non-GAAP MeasuresDirectoryGlossaryInterim Financial Statements
Interim Financial StatementsBasis of PreparationIndependent Auditor’s Review ReportNotes to the Interim Financial Statements

Notes to the Interim Financial Statements CONTINUED
FOR THE SIX MONTHS ENDED 31 JANUARY 2025
($ MILLION)
2 Expenses
AT A GLANCE
This note provides information on expenses and cost of goods sold by function that have been
included in profit before tax from continuing operations, together with additional information on
expenses by nature.
a) Expenses by function
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
Cost of goods sold10,3649,049
Administrative expenses548481
Selling and marketing expenses286276
Distribution expenses226218
Other operating expenses148134
Operating expenses1,2081,109
b) Expenses by nature
COST OF GOODS SOLD
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
Cost of milk:
–New Zealand sourced9,7847,239
–Non-New Zealand sourced603620
Other ingredient purchases and manufacturing costs1,6621,476
Employee benefits expense710683
Energy costs432453
Packaging315312
Storage and distribution223205
Depreciation and amortisation220214
Total other collection and manufacturing costs3,5623,343
Increase in inventories(3,585)(2,153)
Total cost of goods sold10,3649,049
OPERATING EXPENSES
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
Employee benefits expense522501
Storage and distribution135128
Advertising and promotion109103
Information technology107113
Professional fees155105
Depreciation and amortisation9793
Other8366
Total operating expenses1,2081,109
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Interim Financial StatementsBasis of PreparationIndependent Auditor’s Review ReportNotes to the Interim Financial Statements

Notes to the Interim Financial Statements CONTINUED
FOR THE SIX MONTHS ENDED 31 JANUARY 2025
($ MILLION)
3 Subscribed equity instruments
AT A GLANCE
This note provides information on the Group’s capital structure, including shares of the Co-operative and Units of the Fonterra Shareholders’ Fund.
a) Co-operative shares, including shares held within the Group
A reconciliation of movements in shares of the Co-operative is presented in the following table.
SHARES$ MILLION
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
31 JUL 2024
AUDITED
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
31 JUL 2024
AUDITED
Co-operative shares
Co-operative shares on issue at beginning of period1,609,190,5551,609,244,6691,609,244,6695,0785,0785,078
Shares acquired (and cancelled) under buyback programmes–(54,114)(54,114)–––
Co-operative shares on issue at end of period1,609,190,5551,609,190,5551,609,190,5555,0785,0785,078
Treasury shares
Treasury shares at beginning of period(5,000,000)(2,000,000)(2,000,000)(14)(5)(5)
Additional treasury shares––(3,000,000)––(9)
Treasury shares at end of period(5,000,000)(2,000,000)(5,000,000)(14)(5)(14)
Co-operative shares on issue, excluding treasury shares1,604,190,5551,607,190,5551,604,190,5555,0645,0735,064
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Fonterra Interim Report 2025ContentsChair & CEOOur StrategyProgress Non-GAAP MeasuresDirectoryGlossaryInterim Financial Statements
Interim Financial StatementsBasis of PreparationIndependent Auditor’s Review ReportNotes to the Interim Financial Statements

Notes to the Interim Financial Statements CONTINUED
FOR THE SIX MONTHS ENDED 31 JANUARY 2025
($ MILLION)
b) Units in the Fonterra Shareholders’ Fund
There are 107,410,984 units on issue at 31 January 2025 (31 January 2024: 107,410,984 units, 31 July 2024:
107,410,984 units).
c) Market capitalisation
The Group’s market capitalisation has been below the carrying amount of net assets since Fonterra’s
capital review announcement in May 2021. At 31 January 2025, the Group’s market capitalisation was $7.2
billion (31 January 2024: $3.5 billion, 31 July 2024: $4.8 billion) and the carrying amount of net assets was
$8.0 billion (31 January 2024: $8.1 billion, 31 July 2024: $8.2 billion).
The share price is not considered an accurate reflection of the fair value of the Group’s net assets for a
number of reasons, including the nature of the Co-operative and its unique capital structure. For example,
shares traded in a restricted market (i.e. Co-operative shares) are generally expected to trade at a
discount compared to unrestricted markets, there is reduced liquidity in the market, supply and demand
dynamics are impacted, and there is limited or no ability for investors to take a significant ownership
interest or controlling interest.
However, accounting standards consider market capitalisation below the value of net assets to be an
indicator of impairment. Impairment testing performed at 31 July 2024 identified significant headroom,
and no events have occurred which would eliminate this headroom at 31 January 2025.
4 Other disclosures
AT A GLANCE
This note provides further information on other matters related to the Group’s interim reporting.
a) Property, plant and equipment
Additions of $221 million (31 January 2024: $181 million, 31 July 2024: $545 million) were recognised
during the period.
As at 31 January 2025 the Group was committed to spend $400 million (31 January 2024: $237 million,
31 July 2024: $229 million), primarily related to buildings, plant, vehicles and equipment.
b) Ki Tua Fund investments
At 31 January 2025 Ki Tua Fund investments included within Other non-current assets were $74 million
(31 January 2024: $24 million, 31 July 2024: $61 million).
c) Owing to suppliers
At 31 January 2025 Owing to suppliers, included within Trade and other payables, was $2,461 million
(31 January 2024: $2,412 million, 31 July 2024: $1,623 million).
3 Subscribed equity instruments continued
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Fonterra Interim Report 2025ContentsChair & CEOOur StrategyProgress Non-GAAP MeasuresDirectoryGlossaryInterim Financial Statements
Interim Financial StatementsBasis of PreparationIndependent Auditor’s Review ReportNotes to the Interim Financial Statements

Notes to the Interim Financial Statements CONTINUED
FOR THE SIX MONTHS ENDED 31 JANUARY 2025
($ MILLION)
d) Borrowings
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
31 JUL 2024
AUDITED
Total current borrowings1,6441,2441,032
Total non-current borrowings4,1633,3712,356
Total borrowings5,8074,6153,388
Opening balance3,3883,9413,941
Proceeds4,7922,3862,895
New lease liabilities402747
Repayments(2,476)(1,765)(3,643)
Foreign exchange movements59(17)83
Changes in fair values124052
Other (8)313
Closing balance5,8074,6153,388
e) Net movement in working capital and other operating activities
A breakdown of the cash outflows resulting from the increase in working capital and other operating
activities from the Statement of Cash Flows is presented in the following table.
31 JAN 2025
UNAUDITED
31 JAN 2024
1
UNAUDITED
Trade and other receivables(586)298
Inventories(3,601)(2,154)
Trade and other payables878498
Other movements(10)3
Total increase in working capital and other operating activities(3,319)(1,355)
1 Comparative information includes re-presentations for consistency with the current period.
4 Other disclosures continued
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Interim Financial StatementsBasis of PreparationIndependent Auditor’s Review ReportNotes to the Interim Financial Statements

Notes to the Interim Financial Statements CONTINUED
FOR THE SIX MONTHS ENDED 31 JANUARY 2025
($ MILLION)
f) Fair value measurement
The fair value hierarchy for financial assets and liabilities measured at fair value is presented in the following table.
LEVEL 1LEVEL 2LEVEL 3
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
31 JUL 2024
1
AUDITED
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
31 JUL 2024
1
AUDITED
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
31 JUL 2024
1
AUDITED
Measured at fair value on a recurring basis
Derivative assets 1331635500548591–––
Derivative liabilities(18)(62)(77)(777)(107)(375)–––
Other463938–13–855196
Measured at fair value on a non-recurring basis
Net assets held for sale–––––––73
Fair value161(7)(4)(277)454216855899
1 Comparative information includes re-presentations for consistency with the current period.
The fair value of financial assets and liabilities not measured at fair value approximates carrying value.
g) Effective tax rate
The effective tax rate for continuing operations is 28.9% (31 January 2024: 21.0%, 31 July 2024: 16.7%).
To allow imputation credits to be allocated to all Co-operative shares, the Group has elected not to take a deduction for distributions to farmer shareholders.
h) Dividend declared after the reporting period
On 19 March 2025, the Board declared a fully imputed interim dividend of 22 cents per share, to be paid on 8 April 2025 to all holders of Co-operative shares on issue at 27 March 2025.
4 Other disclosures continued
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Interim Financial StatementsBasis of PreparationIndependent Auditor’s Review ReportNotes to the Interim Financial Statements

Non-GAAP measures
Fonterra uses several non-GAAP measures when discussing financial performance. Non-GAAP measures
are not defined or specified by NZ IFRS.
Management believes that these measures provide useful information as they provide valuable insight
on the underlying performance of the business. They may be used internally to evaluate the underlying
performance of business units and to analyse trends. These measures are not uniformly defined or
utilised by all companies. Accordingly, these measures may not be comparable with similarly titled
measures used by other companies. Non-GAAP financial measures should not be viewed in isolation nor
considered as a substitute for measures reported in accordance with NZ IFRS.
Non-GAAP measures are not subject to audit unless they are included in Fonterra’s audited annual
financial statements.
Please refer to the following tables for reconciliations of NZ IFRS to non-GAAP measures, and the
Glossary for definitions of non-GAAP measures referred to by Fonterra.
Reconciliation from profit after tax to total Group normalised EBITDA
GROUP $ MILLION
SIX MONTHS ENDEDYEAR ENDED
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
31 JUL 2024
AUDITED
Profit after tax7296741,128
Net finance costs from continuing operations8582157
Net finance costs from discontinued operations–77
Tax expense from continuing operations293190235
Depreciation and amortisation from continuing operations317307627
Total Group EBITDA 1,4241,2602,154
Loss on sale of DPA Brazil –6666
Total normalisation adjustments–6666
Total Group normalised EBITDA1,4241,3262,220
Reconciliation from profit after tax to total Group normalised EBIT
GROUP $ MILLION
SIX MONTHS ENDEDYEAR ENDED
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
31 JUL 2024
AUDITED
Profit after tax7296741,128
Net finance costs from continuing operations8582157
Net finance costs from discontinued operations–77
Tax expense from continuing operations293190235
Total Group EBIT1,1079531,527
Normalisation adjustments (as detailed above)–6666
Total Group normalised EBIT1,1071,0191,593
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Reconciliation from profit after tax to normalised profit after tax and normalised earnings
per share
GROUP $ MILLION
SIX MONTHS ENDEDYEAR ENDED
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
31 JUL 2024
AUDITED
Profit after tax 7296741,128
Normalisation adjustments (as detailed on the previous page)–6666
Normalised profit after tax7297401,194
Profit attributable to non-controlling interests(21)(35)(54)
Normalisation adjustments attributable to non-controlling
interests–33
Normalised profit after tax attributable to equity holders
of the Co-operative7087081,143
Weighted average number of Co-operative shares
(thousands of shares)
1
1,607,0671,607,8081,607,734
Normalised earnings per share ($)
2
0.440.440.71
Reconciliation from gross profit from continuing operations to total Group normalised
gross profit
GROUP $ MILLION
SIX MONTHS ENDEDYEAR ENDED
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
31 JUL 2024
AUDITED
Gross profit from continuing operations2,2282,0363,822
Gross profit from discontinued operations–6666
Total Group normalised gross profit2,2282,1023,888
Non-GAAP measures CONTINUED
1 Comparatives have been re-presented for consistency with the current period.
2 Normalised earnings per share is based on weighted average number of Co-operative shares.
The Group uses adjusted net debt, a non-GAAP debt measure in monitoring its net debt position and in
calculating the Group’s debt to EBITDA ratio, gearing ratio, and return on capital.
Adjusted net debt is calculated as total borrowings, plus bank overdraft, less cash and cash equivalents,
plus a cash adjustment for 25% of cash and cash equivalents held by the Group’s subsidiaries, adjusted for
derivatives used to manage changes in hedged risks on debt instruments. Amounts relating to disposal
groups held for sale are included in the calculation.
The Group believes that adjusted net debt provides useful information as it is aligned with how certain
rating agencies calculate the Group’s leverage.
GROUP $ MILLION
SIX MONTHS ENDEDYEAR ENDED
31 JAN 2025
UNAUDITED
31 JAN 2024
UNAUDITED
31 JUL 2024
AUDITED
Total borrowings5,8074,6153,388
Add: Bank overdraft1492642
Less: Cash and cash equivalents(218)(239)(540)
Add: Cash adjustments of 25% for cash held by subsidiaries
(including cash and cash equivalents attributable to disposal
groups held for sale)545847
Less: Derivatives used to manage changes in hedged risk on
debt instruments(342)(236)(332)
Adjusted net debt5,4504,2242,605
Equity excluding hedge reserves8,3677,9778,247
Total capital13,81712,20110,852
Adjusted net debt gearing ratio39.4%34.6%24.0%
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TERMSDEFINITION
Adjusted net debtis calculated as total borrowings, plus bank overdraft, less cash and
cash equivalents, plus a cash adjustment for 25% of cash and cash
equivalents held by the Group’s subsidiaries, adjusted for derivatives
used to manage changes in hedged risks on debt instruments.
Amounts relating to disposal groups held for sale are included in
the calculation.
Attributable to equity
holders of the Co-operative
is used to indicate that a measure or sub-total excludes amounts
attributable to non-controlling interests.
Average capital employedis a 13-month rolling average of capital employed.
Capital employedis adjusted net debt less the cash adjustment (used in calculating
adjusted net debt), plus cash and cash equivalents held by
subsidiaries for working capital purposes, plus equity excluding
hedge reserves and net deferred tax assets.
Capital investedis capital expenditure plus right of use asset (e.g. leases) additions
and business acquisitions, including equity contributions, long-term
advances, and other investments.
Consumeris the channel of branded consumer products, such as powders,
yoghurts, milk, butter and cheese.
Continuing operationsmeans operations of the Group that are not discontinued
operations.
Core Operationsrepresents core operating functions including New Zealand milk
collection and processing operations and assets, supply chain,
Fonterra Farm Source™ retail stores, and the physical and financial
commodity portfolio management function.
TERMSDEFINITION
Core Operations
manufacturing cash costs
per kgMS
is the logistics costs, variable and fixed costs of the COO business
unit less non-cash costs (depreciation, amortisation and impairment)
shown by kilogram of New Zealand milk solids collected. Excludes
milk, ocean freight and farm costs.
DIRAmeans the Dairy Industry Restructuring Act 2001, which authorised
Fonterra’s formation and regulates its activities, subsequent
amendments to the Act, and the Dairy Industry Restructuring (Raw
Milk) Regulations 2012.
Discontinued operationsmeans a component of the Group that is classified as held for sale (or
has been sold) and represents, or is part of a single co-ordinated plan
to dispose of, a separate major line of business or geographical area of
operations, or is a subsidiary acquired exclusively with a view to resale.
Earnings before interest,
tax, depreciation and
amortisation (EBITDA)
is profit before net finance costs, tax, depreciation and amortisation.
Earnings per share (EPS)is profit after tax attributable to equity holders of the Co-operative
divided by the weighted average number of shares on issue for the
period.
EBITDA marginis EBITDA divided by revenue from sale of goods.
Eliminationsrepresents eliminations of inter-business unit sales.
Farmgate Milk Pricemeans the average price paid by Fonterra in New Zealand for each
kgMS supplied by Fonterra’s farmer shareholders under Fonterra’s
standard terms of supply. The Farmgate Milk Price is set by the
Board, based on the recommendation of the Milk Price Panel. In
making that recommendation, the Panel provides assurance to
the Board that the Farmgate Milk Price has been calculated in
accordance with the Farmgate Milk Price Manual.
Glossary
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Fonterra Interim Report 2025ContentsChair & CEOOur StrategyProgress Interim Financial StatementsNon-GAAP MeasuresDirectoryGlossary

TERMSDEFINITION
Foodservicerepresents the channel selling to businesses that cater for out-of-
home consumption; restaurants, hotels, cafés, airports, catering
companies etc. The focus is on customers such as; bakeries, cafés,
Italian restaurants, and global quick-service restaurant chains.
High performance dairy ingredients including whipping creams,
mozzarella, cream cheese and butter sheets, are sold in alongside
our business solutions under the Anchor Food Professionals
TM
brand.
Free cash flowis the total of net cash flows from operating activities and net cash
flows from investing activities.
Gearing ratio (%) (adjusted
net debt)
is adjusted net debt divided by total capital. Total capital is equity
excluding hedge reserves, plus adjusted net debt.
Global Dairy Trade (GDT)means the electronic auction platform that is used to sell
commodity dairy products.
Global Markets represents the Ingredients, Foodservice and Consumer channels
outside of Greater China.
Global Markets Consumer &
Foodservice
represents the Ingredients, Foodservice and Consumer channels
in the Middle East and Africa, Oceania, South and South-East Asia
regions
Global Markets Ingredientsrepresents the Ingredients, Foodservice and Consumer channels in
the Atlantic and North Asia; and Asia Pacific Ingredients regions
Greater Chinarepresents the Ingredients, Foodservice and Consumer channels in
Greater China.
Gross marginis gross profit divided by revenue from sale of goods.
TERMSDEFINITION
Ingredientsrepresents the channel comprising bulk and specialty dairy products
such as milk powders, dairy fats, cheese and proteins manufactured
in New Zealand, Australia and Europe, or sourced through our global
network, and sold to food producers and distributors.
kgMSmeans kilograms of milk solids, the measure of the amount of fat
and protein in the milk supplied to Fonterra.
Net debtmeans adjusted net debt.
Non-Reference Productsmeans all NZ milk solids processed by Core Operations, except for
Reference Commodity Products.
Normalisation adjustmentsmeans adjustments made for certain transactions that meet
the requirements of the Group’s Normalisation Policy. These
transactions are typically unusual in size and nature. Normalisation
adjustments are made to assist users in forming a view of the
underlying performance of the business. Normalisation adjustments
are set out in the Non-GAAP Measures section. Normalised is used
to indicate that a measure or sub-total has been adjusted for the
impacts of normalisation adjustments. E.g. ‘Normalised EBIT’.
Operating profit (EBIT)is profit before net finance costs and tax.
Operating profit (EBIT)
margin
is EBIT divided by revenue from sale of goods.
Price Relativities refers to the difference in the weighted average price (in USD)
between the Reference Product portfolio and Non-Reference
Product portfolio. The difference between these two weighted
average prices is a key driver of the Ingredients’ gross margin.
Product channelFonterra has three product channels, Ingredients, Foodservice and
Consumer.
Glossary CONTINUED
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Glossary CONTINUED
TERMSDEFINITION
Reference Commodity
Products (also referred to as
Reference Products)
are the five commodity groups used to calculate the Farmgate
Milk Price, being Whole Milk Powder (WMP) and Skim Milk Powder
(SMP), and their by-products Butter, Anhydrous Milk Fat (AMF) and
Buttermilk Powder (BMP).
Reportedis used to indicate a sub-total or total is reported in the Group’s
Financial Statements before normalisation adjustments. E.g.
‘Reported profit after tax’.
Return on Capital (ROC) is calculated as Total Group normalised EBIT including finance
income on long-term advances less a notional tax charge, divided by
average capital employed.
SeasonNew Zealand: A period of 12 months from 1 June to 31 May.
Australia: A period of 12 months from 1 July to 30 June.
Total Groupis used to indicate that a measure or sub-total comprises continuing
operations, discontinued operations and non-controlling interests.
E.g. ‘Total Group EBIT’.
Trade working capitalis total trade and associate receivables plus inventories, less trade
and associate payables and accruals. It excludes amounts owing to
suppliers and employee entitlements, and includes trade working
capital classified as held for sale
Weighted average share
price
represents the average price Fonterra Co-operative Group Limited
shares traded at, weighted against the trading volume at each price
over the reporting period.
Working capital daysis calculated as 13-month rolling average working capital divided
by revenue from the sale of goods (excluding impact of derivative
financial instruments) multiplied by the number of days in the
period. The working capital days calculation excludes other
receivables, prepayments, other payables and includes working
capital classified as held for sale.
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Fonterra Board of Directors
Peter McBride
Alistair Field
Brent Goldsack
Bruce Hassall
Holly Kramer
Andy Macfarlane
John Nicolls
Cathy Quinn
Alison Watters
Fonterra Management Team
Miles Hurrell
Andrew Murray
Anna Palairet
Komal Mistry-Mehta
Kate Daly
Matt Bolger
René Dedoncker
Richard Allen
Teh-han Chow
Mike Cronin
Registered Office
Fonterra Co-operative Group Limited
109 Fanshawe Street
Auckland Central 1010
New Zealand
Private Bag 92032, Victoria Street West
Auckland 1142
New Zealand
Phone: +64 9 374 9000
Auditor
KPMG
18 Viaduct Harbour Avenue
Auckland 1010
New Zealand
Farmer shareholder & supplier services
Phone: 0800 65 65 68
Fonterra Shares & FSF Units Registry
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna
Auckland 0622
New Zealand
Private Bag 92119, Victoria Street West
Auckland 1142
New Zealand
Phone: +64 9 488 8700
Investor Relations Enquiries
Email: investor.relations@fonterra.com
Phone: +64 9 374 9000
https://www.fonterra.com/nz/en/investors.html
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Fonterra Co-operative Group Limited


Page 1

Distribution Notice
Section 1: Issuer information
Name of issuer
Fonterra Co-operative Group Limited
Financial product name/description Fonterra Co-operative Group Limited Shares
NZX ticker code FCG
ISIN (If unknown, check on NZX website) NZFCGE0001S7
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 27 March 2025
Ex-Date (one business day before the
Record Date)
26 March 2025
Payment date (and allotment date for DRP) 8 April 2025
Total monies associated with the
distribution
1

$353,542,023
Source of distribution (for example, retained
earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.30555556
Gross taxable amount
3
$0.30555556
Total cash distribution
4
$0.22000000
Excluded amount (applicable to listed PIEs) Not Applicable
Supplementary distribution amount $0.03882353

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of Resident
Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT. This should include
any excluded amounts, where applicable to listed PIEs.

Fonterra Co-operative Group
Page 2

Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please state
imputation rate as % applied
6

28%
Imputation tax credits per financial product $0.08555556
Resident Withholding Tax per financial
product
$0.01527778
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any) Not Applicable
Start date and end date for determining
market price for DRP
Not Applicable Not Applicable
Date strike price to be announced (if not
available at this time)
Not Applicable
Specify source of financial products to be
issued under DRP programme (new issue
or to be bought on market)
Not Applicable
DRP strike price per financial product Not Applicable
Last date to submit a participation notice for
this distribution in accordance with DRP
participation terms
Not Applicable
Section 5: Authority for this announcement
Name of person authorised to make this
announcement
Anya Wicks
Contact person for this announcement Anya Wicks
Contact phone number (09) 374 9341
Contact email address Anya.wicks@fonterra.com
Date of release through MAP 20/03/2025



5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is fully imputed the
imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute advice as to whether or not RWT
needs to be withheld.

6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.