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SML - Synlait Milk News Story

NZD3.53 -0.0  -0.3%

Last Trade - 6:00am

Sector
Consumer Defensives
Size
Mid Cap
Market Cap £402.4m
Enterprise Value £661.6m
Revenue £731.6m
Position in Universe 356th / 1898

UPDATE 1-NZ's Synlait Milk withdraws FY21 forecast after a2 Milk cuts sales outlook

Wed 3rd March, 2021 8:52pm
(Adds details on a2 Milk revenue forecast, background)
    March 4 (Reuters) - Dairy firm Synlait Milk Ltd  SML.NZ  on
Thursday withdrew its 2021 earnings forecast, citing significant
uncertainty and volatility within its business after key
customer and shareholder a2 Milk  ATM.NZ  cut its revenue
forecast last week.
    A2 has said it expects full-year revenue at the lower end of
its earlier forecast range, as the COVID-19 pandemic disrupts
its cross-border e-commerce (CBEC) channels.  urn:newsml:reuters.com:*:nL4N2KU51Q
    Both companies have been badly hit by disruptions in the
"daigou" channel, where people buy products, including infant
milk formula, from outside China and resell it in the country.
    Synlait said its previous 2021 forecast of achieving about
half of the net profit after tax (NPAT) from a year ago will now
be unattainable.
    Synlait said it expects a significant drop in the production
of infant formula base powder, and warned that the impact of
global shipping delays was expected to continue and could
further hurt its annual results.
    For 2020, the company posted NPAT of NZ$75.2 million ($54.6
million).  urn:newsml:reuters.com:*:nL4N2GO0BD

($1 = 1.3778 New Zealand dollars)

 (Reporting by Nikhil Subba in Bengaluru; Editing by Shinjini
Ganguli)
 ((Nikhil.Subba@thomsonreuters.com; Reuters Messaging:
Nikhil.Subba.thomsonreuters.com@reuters.net))
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