M.I.A.
OPINION: The previous government spent too much during the Covid-19 pandemic, despite warnings from officials, according to a briefing released by the Treasury.
Despite a decline in half-year profit, Synlait is assuring shareholders it will regain shareholder value.
Read: Synlait Milk concerned with Covid-19.
For the six months ended January 2020, Synlait’s net profit after tax fell 30% to $26.2 million, compared to $37.3 million in its 2019 half-year report.
The independent milk processor says the decline is a result of higher depreciation and interest costs as a result of increased investments.
Total half-year revenue increased by 19% to $559 million and total milk processed grew by 8.5%.
Synalit says its core earnings growth remains sound, however the time and costs of creating new growth opportunities has impacted profitability short-term.
“This is not a reflection of core business non-performance, but a moderation of our own expectations against the investments we are making for our future,” the company wrote to its Shareholders.
“Yes, adjusted assumptions around our infant formula base sales, consumer-packaged infant formula volumes, and lactoferrin pricing mean we will not be able to absorb the costs of standing up our new investments this year – but long-term confidence in our business remains unchanged.”
Last month, Synlait updated it forecast net profit after tax for the full year 2020 to be between $70 million to $85 million.
“We recognise this was not expected, but it forms part of Synlait’s acceptable risk story, which we have been upfront about as we work to diversify and grow.
“Yes, we hoped to increase asset utilisation and earnings at a faster rate, but we remain confident that decisions made will regain shareholder value over the medium to long-term. Delivering on this is front of mind for the board and executive team.”
Trade Minister Todd McClay says his officials plan to meet their US counterparts every month from now on to better understand how the 15% tariff issue there will play out, and try and get some certainty there for our exporters about the future.
A landmark New Zealand trial has confirmed what many farmers have long suspected - that strategic spring nitrogen use not only boosts pasture growth but delivers measurable gains in lamb growth and ewe condition.
It was recently announced that former MP and Southland farmer Eric Roy has stepped down of New Zealand Pork after seven years. Leo Argent talks with Eric about his time at the organisation and what the future may hold.
It's critical that the horticulture sector works together as part of a goal to double the sector’s exports by 2035.
RaboResearch, the research arm of specialist agriculture industry banker Rabobank, sees positives for the Alliance Group in its proposed majority-stake sale to Ireland's Dawn Meats.
The ACT Party's call for a better deal on the Paris Agreement on climate change is being backed by farmer organisations.
OPINION: Westland Milk may have won the contract to supply butter to Costco NZ but Open Country Dairy is having…
OPINION: The Gene Technology Bill has divided the farming community with strong arguments on both the pros and cons of…