It's reported a 659-million-dollar net profit, after bleeding more than 600-million the previous year.
Farmers will pocket a dividend of five cents a share, on top of their milk payout of seven-dollars-14 a kilo.
Economist Peter Fraser says under a new strategy, Fonterra is now focussing on what it can do well.
He says the co-op has stopped trying to be everything for everyone.
