Synlait Milk has sold its North Island assets to its customer and global healthcare company, Abbott, for $270 million (NZD$307 million). CEO Richard Wyeth said the deal will allow Synlait to focus on core business at its Dunsandel facility in Canterbury.
Synlait’s majority shareholder, Bright Dairy (it owns 62.25 per cent of the company) has given the sale its full support.
The North Island assets include the Pōkeno manufacturing facility, its Auckland sites (blending and canning factory and warehouse facilities).
Synlait has been undergoing an operational overhaul after an unprecedented year last year, recording a net loss after tax of $182.1 million ($60.4 million adjusted) and total group gross profit down 61 per cent to $56 million,
Synlait chair, George Adams, said it was a defining moment for the company. “The sale will strengthen the company’s financial position, with the proceeds used to significantly reduce debt.
“This valuable reset presents Synlait with a rich opportunity to move beyond crises to planning a real and vibrant future. This is a turning point we have fought hard for and are ready to embrace,” Adams said.
For Wyeth, the sale is a “much-needed” step change. “In short, this sale will deliver a stronger, simpler, and more secure Synlait.”
FY25 results: hindered by Dunsandel manufacturing challenges
Wyeth said the issues at Dunsandel were complex and impacted the company’s ability to deliver product on time, in spec, and at scale, but were “now largely behind us”.
Snapshot (all figures in NZ$)
- Net debt: $250.7m, down 55% from 4551.6m on prior corresponding period (pcp);
- EBITDA: $50.7m up $54.8m pcp;
- Revenue: $1.8b, up 12% pcp;
- Ingredients: from loss of ($13.5)m to gross profit of $13.1m pcp;
- Advanced Nutrition gross profit: $95m, up 29% pcp;
- Foodservice: 92% lift in production volumes - 8.4m 1lt bottles of cream sold in FY25; and
- Consumer business: $39m, up 28% pcp.
