Synlait Milk has issued a profit warning, revealing that it expects to incur a net loss of between $17 million and $21m for the six-month period ending on Jan 31 2024.
This is a significant decline compared to the company's net profit after tax of $4.8m in the same period the previous year.
The anticipated loss is attributed to increased financing and operational costs, as well as reductions in ingredient and advanced nutrition margins.
Synlait's initial result is still subject to review and may be adjusted accordingly.
The dairy company's board and management are now prioritising the need to deleverage its balance sheet.
Further details will be provided when Synlait releases its half-year result in March.
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