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SML - Synlait Milk News Story

NZD3.4 -0.1  -2.3%

Last Trade - 6:00am

Sector
Consumer Defensives
Size
Mid Cap
Market Cap £385.6m
Enterprise Value £644.2m
Revenue £729.9m
Position in Universe 354th / 1908

UPDATE 1-NZ's Synlait Milk CEO to step down amid uncertainty; co-founder to take interim role

Sun 11th April, 2021 10:16pm
(Adds details, background)
    April 12 (Reuters) - Synlait Milk Ltd  SML.NZ  said on
Monday its chief executive, Leon Clement, would step down at the
end of April, at a time the dairy firm faces significant
uncertainty amid disruptions to the business of key customer and
shareholder a2 Milk Co Ltd  ATM.NZ .
    The company's co-founder and former CEO, John Penno, will
step into the role of interim CEO from May 1, it said. The
search for a permanent replacement for Clement, who spent nearly
2-1/2 years in the job, will start shortly.
    Pandemic-related disruptions to cross-border e-commerce
(CBEC) channels and demand have affected the earnings of both
Synlait and a2, leading them to a slump in earnings and bleak
outlook warnings.
    In particular, the firms have been badly hit by disruptions
in the "daigou" channel, where Chinese shoppers buy products,
including infant milk formula, from outside China and resell it
in the country. The channel accounts for a major portion of a2's
revenue. 
    Last month, Synlait's half-year profit tumbled nearly 76%
and it warned that global shipping delays would continue and
further affect results for the full year.  urn:newsml:reuters.com:*:nL1N2LQ0J8
    It also withdrew its 2021 earnings forecast, after a2 Milk
cut its revenue forecast.  urn:newsml:reuters.com:*:nL3N2L149Q  


    

 (Reporting by Shruti Sonal in Bengaluru; Editing by Daniel
Wallis and Peter Cooney)
 ((Shruti.Sonal@thomsonreuters.com; Twitter: @shrutisonal26;))
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