Synlait Milk Reports $80.6m Half-Year Loss – Recovery Plan Underway

Synlait Milk reported a net loss after tax of $80.6 million for the first half of its financial year, alongside a $34.7 million loss in earnings before interest, depreciation, and amortisation, the Canterbury-based dairy processor announced Monday.

The results come as Synlait continues to implement a recovery plan, dubbed “stabilise, simplify, scale,” under Chief Executive Richard Wyeth. Despite a $32.3 million increase in revenue to $949 million, the company’s bottom line remains firmly in the red.

Wyeth acknowledged the disappointing figures, stating, “They are the result of a period where Synlait faced multiple headwinds and had little choice as to how to deal with them. They reflect a severe lack of optionality, not effort, and they do not define the company’s future – although recovery will take time.”

The financial strain comes as Synlait undergoes a significant strategic shift, including the sale of its North Island assets. According to a report by Food & Drink Business, this move represents a “step change” for the company, refocusing its operations around its Canterbury base. BusinessDesk | NZ reported the move as Synlait Milk saying goodbye to the North Island.

However, a report from RNZ indicates that Synlait’s recovery is being hampered by persistently high costs. The company’s ability to improve profitability remains a key concern, with the challenging economic environment adding to the difficulties. Synlait has flagged that a deeper half-year loss is expected as it continues to reset its operations, according to reporting from Google News.