Synlait reports $96.2m loss, lowers 2024 guidance

Synlait has reported a net loss of $96.2 million for the six months ended Jan 31 2024.

This is compared to a net loss of $17.4m in the same period last year.

The company's revenue increased by 3% to $793.5m, while gross profit was down 47% to $43.6m.

Synlait also announced a higher forecast base milk price for the 2023/2024 season at $7.80 per kilogram of milk solids, up from $7.50.

In light of the financial results, the company has updated its full-year 2024 guidance and now expects the EBITDA result to be significantly lower than FY23, in the range of $45m to $60m.

Synlait attributed the lower guidance to softening demand and/or margins, adverse foreign exchange and product mix, and increased operating expenses.

The company is currently facing material uncertainties in relation to deleveraging options, including an equity raise, a North Island strategic asset review, and the sale of Dairyworks.