Synlait CEO Resignation Highlights Deeper Challenges Facing Dairy Processor
A revolving door of chief executives at milk processor Synlait is a warning sign, says Lincon University senior lecturer in agribusiness Nic Lees.
A month after announcing a further profit downgrade, Synlait shares continued trending south as some shareholders offloaded their stake, fearing things could get worse for the troubled company.
Synlait informed the stock exchange that it remains highly focused on diversifying its customers, mitigating risk, and reducing its cost base and inventory to strengthen its balance sheet.
But it left the door open for further profit downgrades. Last week Synlait shares were trending at $1.58/share after dipping as low as $1.41 on several days. Before its latest profit downgrade, Synlait shares were trading around $2.14/share.
