The sale generated approximately NZ$283.1 million in proceeds, with NZ$200 million earmarked to repay bank facilities. As a result, Synlait’s committed debt facilities will be cut in half, from NZ$400 million to NZ$200 million. Management said the transaction is a critical step in simplifying the business and creating a more stable platform for recovery.

Despite the asset sale, Synlait reported a difficult HY26 result, posting a net loss of NZ$80.6 million for the six months ending 31 January 2026. That compares with a NZ$4.8 million profit a year earlier. Revenue edged up 3.5% to NZ$949 million, but gross profit collapsed to just NZ$3.1 million as manufacturing disruptions, surplus milk and falling whole milk powder prices combined to squeeze returns.

The company said a series of operational problems during FY25 forced it to rebuild customer inventories and sell excess milk at discounted prices. Lower whole milk powder prices late in 2025 compounded the pressure, while operating cash flow fell sharply into negative territory and net debt climbed to NZ$472.1 million. Synlait described the period as a “perfect storm” for its ingredients business.