By David Winning
SYDNEY–Synlait Milk warned on annual profits on Monday, after increased financing and operational costs combined with lower ingredient and Advanced Nutrition margins to drive it a first-half statutory loss.
Synlait said it now expects earnings before interest, tax, depreciation and amortization–or Ebitda–in the 12 months through July to be broadly flat or lower than a year earlier. In September, the company had guided to an improved result.
For its fiscal first half through January, Synlait expects to report a net loss of between 17 million New Zealand dollars (US$10.4 million) and NZ$21 million. That compares with a net profit of NZ$4.8 million at the corresponding stage of fiscal 2023.
“The board and management are actively working on the need to deleverage Synlait’s balance sheet as a priority,” the company said in a regulatory filing.
Synlait is due to release its first-half result in March.
Write to David Winning at [email protected]
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