Dairy Giant Forecasts Improved Financials Despite Lingering Red Ink.
Synlait Milk, a significant player in New Zealand’s dairy industry, is forecasting an improved financial performance for the 2025 fiscal year, despite still projecting a second consecutive annual loss. The company anticipates a net loss after tax between $27 million and $40 million, which, while still in the red, marks a substantial improvement from the $182 million loss reported in FY2024. This signals a potential turning point in its financial trajectory.
Further illustrating this positive shift, Synlait expects to achieve positive underlying earnings before interest, depreciation, and amortisation (EBITDA) of $100 million to $110 million for FY2025, a significant increase from $45 million in the prior year. This robust EBITDA performance is projected to lead to a break-even underlying net profit before tax, representing a remarkable turnaround from the minus $60 million recorded in the previous financial year.
The company acknowledged that its past financial struggles were partly due to specific manufacturing challenges at its Dunsandel plant, which incurred one-off costs. However, Synlait has confirmed that these issues have been resolved, and the plant has successfully completed its winter maintenance. It is now fully operational and engaged in new season production, indicating a stronger operational foundation moving forward for this dairy processor.
New chief executive Richard Wyeth expressed confidence in Synlait’s underlying strengths, emphasizing its solid foundations, strategically located assets, and proven capability to produce complex, high-demand dairy products. This leadership optimism, combined with the forecasted financial improvements, suggests a more stable outlook for the company within the competitive agribusiness sector.
For investors, dairy analysts, and the broader international dairy community, Synlait’s upcoming full FY2025 results, scheduled for release on Monday, September 29, will be closely watched. The anticipated reduction in losses and strong EBITDA growth indicate a strategic recovery, providing valuable insights into the dynamic dairy economics of the New Zealand market and the resilience of its key players.
Source: Farmers Weekly: Synlait climbing out of the red but still at a loss
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