Synlait reports financial loss amid challenging conditions

Synlait Milk Limited has released its financial results for the 12 months ending July 31, 2023.

The company reported a 3% decrease in total group revenue to $1.60 billion and a net loss of ($4.3) million.

Total group EBITDA was down 31% to $90.7 million, while operating cashflow decreased by 83% to $39.0 million.

Capital expenditure declined by 32% to $65.1 million, and net debt increased by 21% to $413.5 million.

The final average base milk price for the 2022/2023 season was $8.22 per kgMS, with an additional $0.27 per kgMS paid for incentives, bringing the total average milk payment to $8.49 per kgMS.

The base milk price forecast for the 2023/2024 season remains unchanged at $7.00 per kgMS.

Synlait faced various challenges in FY 23, including reduced customer demand, CO2 shortages, extreme weather events, the COVID-19 pandemic, and inflationary impacts.

Looking ahead to FY 24, the company expects challenging market dynamics in China, softening global conditions, and continued inflationary pressures.