Fonterra Co-Operative Group (ASX:FCG) has updated its FY23 earnings guidance.

The dairy co-operative expects to pay a full-year dividend at the top end of its dividend policy, which is set between 40-60% of normalised earnings.

Additionally, Fonterra aims to end the financial year at the near-maximum of its forecast range set at 65-80 NZ cents per share.

The higher-than-anticipated results have been credited to favourable ingredient margins which have reportedly allowed Fonterra to excel in the FY23.

Fonterra is a global dairy nutrition company owned by 10,000 farmers and their families and is one of the world’s largest dairy exporters.