New Zealand dairy group Fonterra says El Niño could affect milk-volume growth toward the end of its 2026/27 season. Accounting for the risk, it forecasts fiscal 2027 underlying earnings of 65 to 85 New Zealand cents per share, with a midpoint slightly above FY26’s 71 cents.
The World Meteorological Organization says El Niño is expected to intensify further into 2027 and could be the strongest ever, potentially fueling droughts and typhoons. Fonterra’s fiscal 2026 profit after tax more than doubled from a year earlier to NZ$2.61 billion, boosted by gains from the sale of Mainland Group and strong demand for protein-rich products from its Ingredients business.
Fonterra said it would invest NZ$1 billion over the next three years to expand its protein-manufacturing network in the South Island; the projects are expected to create 50 to 60 permanent roles. Its 33-cent final dividend brings the full-year payout to 73 New Zealand cents per share, compared with 57 cents a year earlier.
