Synlait Milk gets $43m loan as cost pressures mount
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The news: New Zealand dairy producer Synlait Milk has increased its banking facilities to provide added working capital, flagging ongoing cost impacts from manufacturing challenges earlier this year.
The numbers: Synlait announced a new revolving credit facility of NZD50 million ($43.3 million) for the period 14 November to 31 March 2026.
The context: The company said that its lean working capital program for the current financial year has been "difficult to manage" due to resulting cashflow impacts and expenses from manufacturing challenges experienced earlier in the calendar year.
"Although these challenges have been largely resolved, Synlait is experiencing related cost impacts in FY26," the company said this morning.
Synlait is aiming to "significantly reduce its debt" over the financial year by using proceeds from the sale of its North Island assets to pay down debt.
The NZD307 million sale to Abbott Laboratories, which includes the Pōkeno processing plant, is due to complete on 1 April 2026, subject to regulatory and customary conditions.
ASX- and NZX-listed Synlait suffered heavy impairments last year, after securing shareholder backing for a recapitalisation plan under which it issued new shares to its top two shareholders — China’s Bright Dairy and A2 Milk.
The source: ASX
