Synlait profit slumps 83% as it faces curdling outlook

(Image: Synlait)

Mon, 27 Mar 2023

Synlait Milk posted an 83% slump in first-half profit as it dealt with increasingly expensive supply issues and faces a tougher outlook. The Rakaia-based company reported a net profit of $4.8 million in the six months ended Jan 31, down from $27.9m a year earlier. That was despite the gross margin widening to 10.6% from 8.7% a year earlier. Adjusted profit, which strips out one-off costs from new SAP software to deal with the company’s inventory management and supply chain issues, dropped 43% to $8.9m with revenue dipping 3% to...

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