New customers and adding value will bring success, Synlait says.
Synlait may be back in the financial black, but it will not be resting on its laurels, Charles Ferguson, the company’s director of on-farm excellence, sustainability and corporate affairs says.
The company has had a good six months and that was reflected in its half year result for 2025.
Getting Synlait back into profitability had been its focus over the short term.
Synlait’s half year result to January 31, 2025 shows the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) was $63.1 million. It also reporting a net profit after tax (NPAT) of $4.8m.
Its company culture was focused on success, which had made the past few years particularly hard. While the company was able to turn around the business quickly and seize a lot of customer opportunities over the past six to nine months, there is still work to do.
“We have some way to go before we are fulfilling our potential. We need to create new products and new customers to push through Dunsandel.”
Ferguson saw the company’s advanced nutrition business as one area where they could make those new products and achieve higher margins. It was seeing new customers who are purchasing base powder from Synlait, adding their own product and then selling it to consumers.
Its future will be in a larger number of smaller advanced nutrition relationships rather than creating customer relationships that had the size and scale similar to what Synlait has with A2, which in the short term is unlikely.
He also saw potential to add more value to this business by creating new products that catered for an aging population in Asia and Southeast Asia, where the bulk of Synlait’s products are exported to.
“That’s where I see the opportunity for most value.”
Synlait’s food service business was another area where gains could be made. The company was putting through double the volume of product and there was strong demand despite the margins are under pressure because of high fat prices.
Its ingredients business would also enable Synlait to link multinational customer demands back to its farmers.
“That’s something we haven’t been able to tap into as much as we would like to and I think [with] our Lead with Pride programme, we’re very match fit to work with customers that are interested in how the product is being produced on farm.”
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