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Synlait Milk Warns of NZ$77–82 Million First-Half Loss After Plant Disruptions

Management cites higher costs, weaker commodity returns plus inventory rebuilding after Dunsandel issues.

Overview

  • The company forecasts a first-half EBITDA loss of NZ$28 million to NZ$33 million, compared with EBITDA of NZ$63.1 million a year earlier.
  • Most production problems at the Dunsandel plant have been resolved, yet the operational fallout continues to weigh on performance.
  • Rebuilding low inventories led to additional sales of low-margin raw milk, pressuring margins and lifting operating costs.
  • Shares fell more than 18% in New Zealand and over 13% in Australia after the profit warning.
  • Synlait plans to complete the sale of its North Island assets on 1 April to reduce debt and concentrate operations in Canterbury.