Synlait shares take a hammering
Troubled milk processor Synlait's share price is taking a hammering as nervous investors offload their stakes.
Troubled Canterbury milk processor Synlait has posted a loss of $4.3 million for 2023 financial year, a major reversal from a $38m profit the previous year.
The company’s total revenue was down 3% to $1.6 billion and total group earnings before interest, taxes, depreciation, and amortization (EBITDA) down 31% to $90.7m.
Operating cashflow was down 83% to $39m, capital expenditure down 32% to $65.1m and net debt up 21% to $413.5m.
Synlait chair Simon Robertson described the financial results as “challenging and not where we need them to be”.
But he says they are building the foundations for a stronger Synlait, playing to its strengths while continuing to diversify products, markets, and customers.
“Our refreshed strategy leverages Synlait’s strengths in our world-class capabilities and experience in partnering to produce high-value Advanced Nutrition and Foodservice products."
The company plans to address its balance sheet over the coming 12 months, including divesting Dairyworks and Temuka cheese assets.
Roberston says the company also plans to right size its cost base to current activities and near-term growth opportunities; deliver and build on our current and prospective Advanced Nutrition and Foodservice customer opportunities; and lift operational performance.
Synlait chief executive Grant Watson admitted that it was an extremely challenging year for Synlait.
He says various factors contributed to the poor financial performance, including material reductions in customer demand, extreme weather events, the Covid-19 pandemic, inflationary impacts on cost base, and costs associated with the launch and stabilisation of enterprise resource planning (ERP) system.
“Some factors were outside our control, and others were within our control. Thank you to our shareholders, staff, farmer suppliers, and customers for your support. We are focused on getting the basics right, lifting our performance, and returning to profitability, as we look ahead to a new and exciting era in Synlait."
China’s Ambassador Wang Xiaolong says bilateral economic and trade cooperation between China and New Zealand has made significant and rapid progress.
South Waikato farm manager Ben Purua’s amazing transformation from gang life to milking cows was rewarded with the Ahuwhenua Young Maori Farmer award last night.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.