Synlait shares take a hammering
Troubled milk processor Synlait's share price is taking a hammering as nervous investors offload their stakes.
Details of the refreshed strategy will be released next month when its full year results are announced.
In a statement to the New Zealand stock exchange, the company says the refreshed strategy will focus on its core business opportunities: advanced nutrition, ingredients, consumer (including fully-owned subsidiary Dairyworks) and food service.
A new expanded leadership team has been announced with Rob Stowell retained as chief financial officer.
Tim Carter, chief executive of Dairyworks, also becomes director of consumer.
Nigel Macdonald, director of operations, Suzan Horst, director of quality, regulatory and laboratory and Boyd Williams, director of people and culture are confirmed in new roles.
Five role remain unfilled - director of ingredients, director of advanced nutrition, President China and director of foodservice, director of on-farm excellence and business sustainability and director of strategy, Innovation and corporate affairs.
The revamps means some executive roles, director legal, risk and governance, director strategy and business transformation, director sustainability, brand, beverages and cream, and director nutritionals and ingredients roles - have been disestablished.
Two new roles, head of legal, risk and governance and head of information services, have been created and will report to CFO Stowell.
Synlait says it is working with staff who have been impacted.
It says the new role of director of on-farm excellence and business sustainability, elevates milk supply to the executive leadership team.
"The role will concentrate on the critical importance of milk supply, on-farm excellence, and sustainability to ensure Synlait’s milk pool remains highly competitive, while continuing to accelerate the company towards its sustainability targets on and off farm.”
Synlait says executive leadership team appointments will be announced to the market as they are made.
The new roles come into effect September 1.
In April, the listed milk company, 39% owned by China-based Bright Dairy, reported a net profit of $27.9 million for the six months ending January 31, 2022.
This was a whopping 338% more than the same period last year, which admittedly was a disastrous result for the company.
Last September Synlait reported a $28.5 million loss for FY2021, its first loss after nine years of profitability.
Synlait’s woes began in December 2020 when key customer and stakeholder a2 Milk suddenly reduced its demand for infant formula.
