ASX consumer shares Cobram Estate Olives Ltd (ASX: CBO) and Fonterra Shareholders Fund (ASX: FSF) have each posted positive updates on Friday, and the market has responded.
Cobram shares are trading nearly 3% higher on the day at $1.60 apiece after the business posted its FY24 results.
Whereas Fonterra is up less than 1% and trades at $4.03 apiece after the company provided its FY25 milk price update and FY24 earnings guidance.
Let's dive into what these 2 ASX agribusiness stocks posted today.
ASX consumer shares outshine
The ASX consumer share reported a 34.8% rise in revenue, reaching $227.8 million for the year, produced by a 35% growth in olive oil sales.
This grew net profits by 140% over the year to $18.5 million. Growth was underscored by a surge in packaged goods sales in both Australia and the US.
Growth was also fuelled by increased household penetration in Australia and expanded distribution in the US.
The company produced 13.3 million litres of olive oil across its operations, with the US crop of 3.2 million litres marking its largest harvest to date.
It is now "one of the largest olive oil producers in the USA".
The CEO and director's combined report highlighted the company's strong market position:
FY2024 was a pleasing year for the Company, characterised by the ongoing robust demand for our extra virgin olive oil ("EVOO"), as consumers continue to recognise its high quality and positive health attributes. During FY2024 the Company grew packaged goods sales in both the Australian and USA markets, with increased household penetration in Australia and growing distribution in the USA expected to strengthen our market position in future years, allowing us to capitalise on our growing olive oil supply from company-owned third-party olive groves.
Looking ahead to FY25, the ASX consumer share expects sustained strong demand for its products despite a global olive oil shortage.
Fonterra sees higher milk price
Fonterra shares are also in the green today after the company increased its FY25 milk price forecasts and FY24 guidance.
It raised Farmgate Milk Price estimates at the midpoint by 50 cents, now calling for $8.50 per kilogram of milk solids (kgMS).
The total forecasted range is $7.75 – $9.25 per kgMS.
The changes reflect the recent uptick in Global Dairy Trade (GDT) prices and "the strength of
the Co-op's balance sheet".
Additionally, the ASX consumer share updated its FY25 Advance Rate Schedule, allowing farmers to receive more payments earlier in the season.
The company also updated its FY24 earnings guidance. Fonterra now expects earnings from continuing operations to hit the top end of the previously announced range of 60-70 cents per share.
Management says this performance sets Fonterra up to pay a full-year dividend. The final earnings and dividend details are to be confirmed in September.
Fonterra's CEO, Miles Hurrell, stressed the significance of this uplift:
As we look to close out the books for the year, it's become clear that we have maintained strong performance across FY24.
We're indicating we expect our earnings to be at the top end of our forecast range and this puts us on track for a strong full year dividend.
Foolish takeaway
These 2 ASX consumer shares are on investors' radars today after posting positive updates.
Cobram shares have risen 33% in the past 12 months, whereas Fonterra shares have risen 42%.
