Takeover bid?
OPINION: Canterbury milk processor Synlait is showing no sign of bouncing back from its financial doldrums.
Canterbury processor Synlait has reported a net profit of $12.4 million for the first half of 2016.
Last year the company's half year result was $0.4 million. It says the big profit rise results from increased nutritional sales in canned infant formula.
"We're glad to deliver a solid result for the first half of FY16," says chairman Graeme Milne. "Our significant investment in customer and product development, people, plant and operating systems in recent years is beginning to transform our earnings.
"Our core strategy is to partner with leaders in the infant formula and adult nutrition industries. These half year results demonstrate the early success of this strategy and we're pleased with our pace of execution."
Nutritional product sales for the period were 7498 MT, a 155% increase on HY15's 2946 MT; this accounted for 16% of total sales volumes in HY16.
"The result we're expecting is an almost fourfold increase in canned infant formula sales in FY16, compared to FY15. Concurrently, by the end of FY16 we will have strengthened our balance sheet by restructuring our working capital requirements and repaying debt.
"This position provides a base for potential further capital expansion," says Milne.
Managing director John Penno highlights the success of Synlait's partnership with nutritional customer The a2 Milk Company.
"As the sole manufacturer of their fast growing a2 Platinum range of infant formula, it's a good example of a strong customer relationship providing a positive return to our bottom line," says Penno.
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
The Food and Agriculture Organisation of the United Nations (FAO) has welcomed a resolution adopted by the United Nations (UN) General Assembly to declare 2026 International Year of the Woman Farmer.
Waikato herd health veterinarian Katrina Roberts is the 2024 Fonterra Dairy Woman of the Year.
Trade Minister Todd McClay says New Zealand has no intention of backing down in a trade dispute with Canada over dairy products.
There have been leadership changes at the Hamilton-based Dairy Goat Co-operative, which has been struggling financially in recent years.
OPINION: Canterbury milk processor Synlait is showing no sign of bouncing back from its financial doldrums.
OPINION: It seems every bugger in this country can get an award these days.