Synlait shares take a hammering
Troubled milk processor Synlait's share price is taking a hammering as nervous investors offload their stakes.
The Canterbury-based milk processor now expects a net profit after tax (NPAT) of between $70 million and $85 million, compared with $82.2 million for 2019.
The company says the outbreak has had no material short-term impact on its financial performance, but it represents some risk going forward so was considered as part of the broader outlook update.
The company says it takes the health and wellbeing of its employees and its food safety responsibilities very seriously.
“The spread of Coronavirus and the risk it poses to Synlait’s business is being carefully monitored. Globally there is uncertainty about Coronavirus’ impact on supply chains and consumer demand.”
Synlait chief executive Leon Clement said Synlait is an export-based business with a reputation built and maintained on putting people, food safety and quality at its heart.
“This will continue to inform our response to this situation. We are not currently experiencing any supply chain disruption; however, we are monitoring the situation very closely and felt it prudent to front foot potential impacts.”
