Fonterra Co-operative Group (FRA:X4I) Operating Income: €820 Mil (TTM As of Jan. 2026)

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FRA:X4I Fonterra Co-operative Group Ltd FRA:X4I
69 GF Score
Price €2.71
GF Value €1.77
! 7 Warning Signs
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What is Fonterra Co-operative Group Operating Income?

Fonterra Co-operative Group FRA:X4I 69 Operating Income is €820 Mil as of Jan. 2026. GuruFocus rates FRA:X4I with a GF Score™ of 69/100 and a GF Value™ of €1.77. The stock has 7 warning signs investors should review.

Fonterra Co-operative Group's Operating Income for the six months ended in Jan. 2026 was €521 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2026 was €820 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Fonterra Co-operative Group's Operating Income for the six months ended in Jan. 2026 was €521 Mil. Fonterra Co-operative Group's Revenue for the six months ended in Jan. 2026 was €6,206 Mil. Therefore, Fonterra Co-operative Group's Operating Margin % for the quarter that ended in Jan. 2026 was 8.39%.

Good Sign:

Fonterra Co-operative Group Ltd operating margin is expanding. Margin expansion is usually a good sign.

Fonterra Co-operative Group's 5-Year average Growth Rate for Operating Margin % was 11.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Fonterra Co-operative Group's annualized ROC % for the quarter that ended in Jan. 2026 was 10.52%. Fonterra Co-operative Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2026 was 18.66%.


Fonterra Co-operative Group  (FRA:X4I) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Fonterra Co-operative Group's annualized ROC % for the quarter that ended in Jan. 2026 is calculated as:

ROC % (Q: Jan. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2025 ) + Invested Capital (Q: Jan. 2026 ))/ count )
=1041.716 * ( 1 - 27.31% )/( (6635.716 + 7761.578)/ 2 )
=757.2233604/7198.647
=10.52 %

where

Invested Capital(Q: Jul. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=8999.27 - 2204.888 - ( 158.666 - max(0, 3265.226 - 5215.428+158.666))
=6635.716

Invested Capital(Q: Jan. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=10498.322 - 2678.484 - ( 58.26 - max(0, 3896.972 - 6851.82+58.26))
=7761.578

Note: The Operating Income data used here is two times the semi-annual (Jan. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Fonterra Co-operative Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jul. 2025  Q: Jan. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1045.7/( ( (2872.927 + max(2019.522, 0)) + (2818.906 + max(3498.612, 0)) )/ 2 )
=1045.7/( ( 4892.449 + 6317.518 )/ 2 )
=1045.7/5604.9835
=18.66 %

where Working Capital is:

Working Capital(Q: Jul. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(675.741 + 2158.675 + 2193.591) - (2204.888 + 0 + 803.597)
=2019.522

Working Capital(Q: Jan. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(952.084 + 3327.315 + 2514.161) - (2678.484 + 0 + 616.464)
=3498.612

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jan. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Fonterra Co-operative Group's Operating Margin % for the quarter that ended in Jan. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jan. 2026 )/Revenue (Q: Jan. 2026 )
=520.858/6206.474
=8.39 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Fonterra Co-operative Group Operating Income Related Terms


Fonterra Co-operative Group Operating Income Historical Data

* Premium members only.

The historical data trend for Fonterra Co-operative Group's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Fonterra Co-operative Group Operating Income Chart

Fonterra Co-operative Group Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 521.07 602.96 1,132.68 740.16 796.41

Fonterra Co-operative Group Semi-Annual Data
Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25 Jul25 Jan26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 549.89 200.19 527.35 298.85 520.86
FRA:X4I
69GF Score
Fonterra Co-operative Group Ltd FRA:X4I
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Fonterra Co-operative Group Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jan. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was €820 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of €820 Mil mean?
Fonterra Co-operative Group (FRA:X4I) has a Operating Income of €820 Mil as of Jan. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Fonterra Co-operative Group and its competitors.
Is Fonterra Co-operative Group's Operating Income too high?
Fonterra Co-operative Group's current Operating Income is €820 Mil. Overall, Fonterra Co-operative Group has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Fonterra Co-operative Group's Operating Income compare to KHC and GIS?
Fonterra Co-operative Group's Operating Income of €820 Mil can be compared against companies in the Consumer Packaged Goods industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Consumer Packaged Goods company?
A good Operating Income depends on the Consumer Packaged Goods industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Fonterra Co-operative Group and its competitors. Fonterra Co-operative Group's current Operating Income is €820 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fonterra Co-operative Group stock overvalued right now?
Fonterra Co-operative Group (FRA:X4I) has a current Operating Income of €820 Mil. The stock's GF Value™ is €1.77, compared to a current price of €2.71 — trading 52.8% above its estimated fair value. The current Operating Income is €820 Mil. Fonterra Co-operative Group's overall GF Score™ is 69/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Fonterra Co-operative Group (FRA:X4I), the current Operating Income is €820 Mil as of Jan. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Fonterra Co-operative Group (FRA:X4I) Overvalued in 2026?

Based on GuruFocus' analysis, Fonterra Co-operative Group stock appears to be overvalued. The current stock price of €2.71 is trading 52.8% above its estimated GF Value™ of €1.77.

Key valuation signals for FRA:X4I:

  • Operating Income: €820 Mil
  • GF Value™: €1.77 vs. price of €2.71 (52.8% above fair value)
  • GF Score™: 69/100 with 7 warning signs

No single metric tells the full story. See the FRA:X4I stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Fonterra Co-operative Group Business Description

Other Exchanges FCG:New Zealand
Address 109 Fanshawe Street, Auckland Central, Auckland, NTL, NZL, 1010
Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets is Asia, China, Australia, New Zealand, the United States, and the Rest of the world.
69GF Score

Get the complete analysis for FRA:X4I

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€2.71
Price
€1.77
GF Value