New Zealand's Synlait narrows loss forecast as turnaround gains momentum (updated)

Synlait Milk

29/07/2025 22:20

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July 30 (Reuters) - New Zealand's Synlait Milk SML.NZ said on Wednesday it expects to report a significantly narrower annual loss, signalling the first green shoots of a recovery after a turbulent period that prompted a rescue by its largest shareholders.

The dairy processor now forecasts a reported net loss after tax of between NZ$27 million ($16.08 million) and NZ$40 million for the year ending July, a sharp improvement from the NZ$182.1 million loss it posted a year earlier.

Synlait is also targeting a break-even result on an underlying net profit basis, as it gradually stabilises operations amid ongoing risks related to milk stream returns and subdued growth in the second half.

"The company's recovery had been tracking in line with expectations and while turnaround will take time, I am confident of success," said Richard Wyeth, who took over as CEO in mid-May.

    The company, which embarked on a strategic review last year, was buoyed in September by a NZ$217.8 million capital raise that was backed by top investors - China's Bright Dairy and A2 Milk ATM.NZ, following a shareholder vote.

Synlait also projected underlying EBITDA between NZ$100 million and NZ$110 million for the full year, with the midpoint marking more than double last year’s NZ$45.2 million — a sign that the operational reset is beginning to yield results.

($1 = 1.6793 New Zealand dollars)

 (Reporting by Nichiket Sunil in Bengaluru; Editing by Leroy Leo)

 ((Nichiket.Sunil@thomsonreuters.com;))