By David Winning
Synlait Milk, a leading dairy company, issued a warning on its annual profits, citing increased financing and operational costs along with lower margins in its ingredient and Advanced Nutrition businesses. As a result, it reported a statutory loss for the first half of its fiscal year.
The company now expects its earnings before interest, tax, depreciation and amortization (EBITDA) for the 12 months ending in July to be either flat or lower compared to the previous year. This is a reversal of its earlier guidance in September, when it anticipated an improved result.
Synlait Milk estimates that it will report a net loss ranging from 17 million New Zealand dollars (US$10.4 million) to NZ$21 million for its fiscal first half ending in January. This stands in contrast to a net profit of NZ$4.8 million during the same period in fiscal 2023.
To address the situation, the company stated that its board and management are actively focused on deleveraging Synlait’s balance sheet as a top priority.
Synlait’s first-half financial results will be released in March.