Forecast Net Operating Profit And Net Profit After Tax – FY Ending 30 June 2025 & Forecast For FY Ending 30 June 2026

Landcorp Farming Limited trading as Pāmu advises that it has narrowed its forecast range for Net Operating Profit (NOP) for the financial year ending 30 June 2025, reflecting its preliminary unaudited results. It now expects full-year NOP of between $46 million and $49 million. This compares to the previous forecast range of $43 million to $51 million released on 3 March 2025.

Pāmu also forecasts a Net Profit after Tax (NPAT) range of $119 million to $122 million, which would represent a record profit across both measures for the company. This demonstrates a significant turnaround in the company’s performance when compared to FY24, where NOP was $20 million and the company posted a Net Loss After Tax of $26 million.

The improved financial performance is due to enhancing productivity through targeted pasture and livestock management as part of operational excellence initiatives in the State-Owned Enterprise’s core farming business. Revenue has remained strong, with international markets driving high milk and red meat prices, which have offset the impact of drought conditions that constrained milk production in the Central North Island during the season.

The preliminary result assumes a final Fonterra conventional milk price of $10 per kilogram of milk solids. Beef farmgate prices have remained above the five-year average, reflecting strong export demand, particularly from the US, and lower domestic production. Similarly, lamb prices continued to rise, driven by sustained demand in key markets and reduced lamb slaughter volumes nationwide.

The outlook for FY26 remains positive with Pāmu forecasting a NOP of between $56 million and $66 million. The midpoint of this forecast would represent another record NOP for the company and show its focus on core business objectives of efficiently and profitably managing the Crown’s farming portfolio for commercial returns. The lift in profitability occurs despite an assumed decrease in the Fonterra conventional milk price to its midpoint forecast of $9.50 per kilogram of milk solids and a softening of red meat prices from the current high levels.

The wide range of the FY26 forecast recognises the risks presented by material adverse weather events, volatility in commodity prices, currency and other markets and geopolitical tensions.

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