Synlait Milk CEO bemoans ‘frustratingly disappointing’ swing to HY loss
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The news: Synlait Milk swung to a first-half loss as chief executive Richard Wyeth warned of “multiple headwinds” and “little choice as to how to deal with them”.
The numbers: The New Zealand dairy company reported a net loss after tax of NZD80.6 million ($67 million), down from a net profit of NZD4.8 million in the prior corresponding period.
Net debt soared 88% year on year to NZD472.1 million. Revenue rose 3.5% to NZD949 million.
The context: Wyeth called the results “frustratingly disappointing”.
“They reflect a severe lack of optionality, not effort, and they do not define the company’s future — although recovery will take time,” he said.
Synlait said the period was impacted by a “perfect storm” of manufacturing challenges and lower returns in its ingredients business unit.
The group adjusted its manufacturing plan to offset challenges at its main Dunsandel facility in July 2025, resulting in surplus milk. Meanwhile, the price of whole milk powder “decreased sharply” at the end of the 2025 calendar year, resulting in “significant losses” in the company’s ingredients portfolio.
Synlait today released a new “roadmap to recovery”, named “stabilise, simplify and scale”.
“Behind our roadmap, sits a real determination to ensure the coming 12 to 24 months will be seen as a period where Synlait under promised and over delivered,” said board chair George Adams.
What they said: “We know, like us, those who support Synlait are hungry for positive financial performance,” said Adams.
“Unfortunately, we cannot present that today. Instead, we are sharing the roadmap designed to reposition Synlait for success. This begins with the sale of the company’s North Island assets and we are on track to complete that next week.”
The source: ASX
