fbpx
Print this page
Friday, 20 March 2020 11:48

Synlait Milk concerned with Covid-19 

Written by  Staff Reporters
Covid-19 has so far had no impact on Synlait's financial performance. Covid-19 has so far had no impact on Synlait's financial performance.

Independent milk processor Synlait says Covid-19 has so far had no impact on its financial performance, however the processor remains greatly concerned.

The nation’s third-largest dairy company wrote to its shareholders this week that it has adopted the Government’s strategy to ‘flatten the curve’.

Synlait says it has taken steps to restrict all people movements wherever possible, reviewing all roles for their suitability to work from home and keeping their China office closed.

“While we can confirm there has been no material short-term impact on our financial performance in connection with Covid-19, it represents some downside risk going forward.

“This was a factor in Synlait’s decision to issue a wider guidance range back in February. 

“Demand indications from The a2 Milk Company suggest Covid-19 had a positive impact on consumer-packaged infant formula sales in the first two months of the 2020 calendar year, however the company was unable to quantify the FY20 impact,” Synlait wrote to its Shareholders.

Synlait says it has experienced no significant operational impact, but the company is seeing pressure on its broader supply chain, particularly in relation to space availability and shipping schedules.

Synlait says its team is “working closely” with logistic partners to assist in understanding capacity and scheduling.

“As New Zealand’s largest infant nutrition manufacturer, Covid-19 concerns us greatly and our incident assessment team is reviewing the situation and updating our response daily.

“We are deeply committed and connected to China, the customer partnerships we have there, and the role that we play in providing infant nutrition to many families across China.”

More like this

No easy ride for struggling sheep farmers

Stubbornly high farm input costs, a slow Chinese recovery and a flood of Australian lamb onto the global market are the main factors contributing to the tough times being faced by NZ's sheep farmers.

Deal to bring cost relief for farmers

Listed milk processor Synlait is partnering with rural retailer Farmlands to deliver exclusive discounts to farmer suppliers, who have been battling high farm input costs for the past two years.

Featured

Sheep drench resistance costly

Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as…

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand…

Machinery & Products

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

Can-Am showcases range

Based on industry data collected by the Motor Industry Association, Can-Am is the number one side-by-side manufacturer in New Zealand.