Synlait Milk says its business recovery plan is “on track”. Acting CEO, Tim Carter says “huge progress” has been made and the company expects to return to profitability in 2H FY25.
If so, it will be quite the turnaround for the milk processor, which recorded a net loss after tax of $182.1 million and group gross profit down 61 per cent to $56 million.
“Synlait began FY24 with too much production capacity, unsustainably high levels of debt, significantly higher interest rates, and sharply declining demand for infant formula at a macro level.”
Carter said the company had worked “extremely hard” to lift productivity and performance in the last six months.
“While we cannot take our foot off the pedal, we are pleased to announce we expect to return to profitability at our upcoming half year result,” Carter said.
Synlait announced it was increasing premiums to existing and new South Island suppliers as well as putting premiums in place for the following three seasons.
Synlait said it expects earnings before interest, taxes, depreciation, and amortisation (EBITDA) in 1H25 to be between $58-$63 million.
The reasons were NPD driving growth in Advanced Nutrition products, strong performance in its Ingredients business, and continued costs control.
The company will release its 1H25 results on 24 March.
