Wednesday, 19 September 2018 10:25

Synlait’s bumper net profit

Written by 
Synlait made a net profit of $74.6 million last year. Synlait made a net profit of $74.6 million last year.

Canterbury milk processor, Synlait made a net profit of $74.6 million last year.

The company almost doubled its net profit after tax (NPAT) of $39.5 million announced for the same period the previous year.

The company says results for the financial year ending 31 July 2018 were achieved in a period of large investment, and a renewed focus on the future.

An increase in finished infant formula sales helped to drive this profit, which was enabled by a number of investments in the blending and consumer packaging space.

“In November 2017 we completed our second Dunsandel wetmix kitchen, and the same month commissioned our Auckland blending and consumer packaging facility. Both these projects have allowed us to increase our finished infant formula capacity,” said Graeme Milne, chairman. 

Synlait also announced that it has entered into a conditional agreement to acquire selected Talbot Forest Cheese assets. This includes property, plant and equipment at a new 12,000 MT Temuka site, the consumer cheese brand (Talbot Forest Cheese) and customer relationships.

“The proposed acquisition builds on our existing portfolio of high-quality, flexible dairy manufacturing capabilities that can be tailored to meet customer needs,” says Synlait’s new chief executive Leon Clement. 

FY18 has been a successful year for Synlait, with top line revenue increasing from $759 million to $879 million.

“That is a gratifying 16% growth in top line and an 89% growth in bottom line,” says Milne.

Synlait’s final average total milk price for FY18 has been announced at $6.78/kgMS; includes a base milk price of $6.65/kgMS and seasonal and average value-added incentive payments of 13c/kgMS.

More like this

Synlait's back

OPINION: After years of financial turmoil, Canterbury milk processor Synlait is now back in business.

Wyeth to head Synlait

Former Westland Milk boss Richard Wyeth is taking over as chief executive of Canterbury milk processor Synlait from May 19.

Synlait sweetens milk supply deal

Canterbury milk processor Synlait is confident of retaining its farmer supplier base following a turnaround in its financial performance.

Featured

Big return on a small investment

Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.

Editorial: Sensible move

OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Cuddling cows

OPINION: Years of floods and low food prices have driven a dairy farm in England's northeast to stop milking its…

Bikinis in cowshed

OPINION: An animal activist organisation is calling for an investigation into the use of dairy cows in sexuallly explicit content…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter