The previous full year earnings guidance was already at a healthy 40-60c per share.
The co-op will release its full year 2025 interim results on March 20 as well as confirm its interim dividend.
Chief executive Miles Hurrell told NZX the co-op had delivered a strong earnings performance alongside a forecasted farmgate milk price midpoint of $10 per kilogram of milksolids.
“As we have finalised preparation of our interim results, and looked at the balance of the year ahead, we are pleased to confirm an upgrade in our full year forecast earnings range.
"This upgrade reflects the underlying strength of our core ingredients business and the resilience in our consumer channel, which is contributing to a robust result for businesses in the divestment perimeter."
Hurrell said the consumer business had shown good volume and margin growth.
The co-op’s dividend policy is 60-80% of full year earnings, with up to 50% of the full year dividend to be paid at the interim point.
Fonterra also announced it has begun a roadshow series in New Zealand, Australia and Asia for the potential listing of its consumer business under the new name of Mainland Group.
The co-op is weighing up whether the sale of its consumer arm, including major household brands Anchor and Mainland and integrated businesses, will be by trade sale to industry players, or an initial public offering (IPO) to investors.
An information pack is being released to investors at the meetings with details of the financial profile to be divested.
The pack includes changes to previous financial disclosures such as the decision to retain a manufacturing facility in Saudi Arabia and its Greater China consumer business.
The roadshow will be led by Mainland Group CEO-elect René Dedoncker and CFO-elect Paul Victor.
Hurrell said the meetings were an important step in the process of testing the merits and value of an IPO, which the co-op was exploring as a divestment option alongside a trade sale.
“We are pleased to be making progress in both the potential trade sale and IPO processes and will continue to keep our farmer shareholders, employees and the market updated on milestones.’’
Fonterra said the sale was part of its programme to grow further value for farmer shareholders through its foodservice and ingredients businesses.
For the IPO plan to proceed it must be approved by farmer shareholders.
