Synlait, which is part-owned by a2 Milk Company did not provide any profit figure for its fiscal 2021 guidance, but said it was targeting a “slight improvement on fiscal 2020”.
Reuters reports that the diary firm also increased its milk price forecast for the 2020-2021 season to NZ$6.40 per kg of milk solids (kgMS), up from its previous estimate of NZ$6.00 kgMS.
“While it is still early in the season, and commodity prices remain volatile, this reflects growing confidence in the season ahead,” the company said in a statement.
Synalit said that while global uncertainty continues regarding the coronavirus outbreak, it does not expect any disruption to manufacturing or demand for its ingredient and lactoferrin business.
The company added that it was in the process of finalising a long-term supply agreement with a new, multinational customer for packaged products which is expected to have a positive impact on its earnings from fiscal 2023.
($1 = 1.5300 New Zealand dollars).
