Wednesday, 04 March 2020 12:42

Coronavirus worries for Synlait

Written by  Staff Reporters
Synlait chief executive Leon Clement says Synlait is an export-based business. Synlait chief executive Leon Clement says Synlait is an export-based business.

The coronavirus outbreak contributed to Synlait’s decision to issue a wider earnings guidance range.

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.”

More like this

Synlait's milk price drop

Canterbury milk processor Synlait has reduced its 2019-20 forecast base milk price by 20c to $7.05/kgMS.

Overstayers irk farmers

A new law preventing the eviction of tenants from rental properties is causing a headache for some dairy farmers.

Memorable vintage

With a backdrop of COVID-19, this has been a harvest like no other.

Distributor focussing on farmer support

AGCO Australia and New Zealand has announced plans focused around protecting the welfare and livelihood of its customers, employees and the community during the COVID-19 pandemic. 

Fonterra’s big break

Former Fonterra chairman Sir Henry van der Heyden believes the co-operative will come out a stronger global player post-COVID-19.


ANZCO makes a $30m profit

Meat company ANZCO Foods recorded its best-ever revenue of $1.7b and a net profit before tax of $30.6m for the year ended 31 December 2019.


M. bovis – we’re making headway

Ministry for Primary Industries chief science adviser, Dr John Roche on the indications New Zealand is winning the fight against Mycoplasma bovis.

Delays ruled out on water reforms

Delaying the introduction of new water reforms was not an option according to the two cabinet Ministers directly involved – Environment Minister David Parker and Agriculture Minister Damien O’Connor.

$700m for freshwater clean up

The Government has announced a $700 million fund to support the primary sector and other groups in meeting new clean water standards.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Effluent power

Finnish dairy company Valio is on a mission to reduce milk’s carbon footprint to zero by 2035.

What’s in a name?

The man who coined the term ‘Gypsy Day’ is slightly miffed that a term he introduced to New Zealand’s farming…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter