Dairy co-operative Fonterra has revised its full year profit outlook to the top end of its forecast range. The company expects its normalised profit to reach the upper limit of 65-to-80 cents per share for the year ending in July. Additionally, Fonterra anticipates paying a full year dividend at the higher end of its dividend policy, which is 40-to-60 percent of normalised earnings. This improved guidance is attributed to a strong financial year and favorable Ingredients margins.

Last week, Fonterra adjusted its milk price for the current season and reduced the opening price for the next season due to declining demand and lower global dairy prices. CEO Miles Hurrell stated that as they conclude their financial reports, they will provide more guidance on their anticipated year-end performance.

The full year dividend will include the interim dividend of 10 cents per share that has already been paid, as well as the final dividend, which is expected to be paid in October. Fonterra will confirm its final full year earnings and dividend figures when it releases its financial results next month.