- 012H EBITDA NZ$42.8m; NPAT NZ$5.2m profit
- 02FY26 rev NZ$1.94b; underlying EBITDA NZ$46.3m
- 03Debt NZ$215m; cash NZ$295.7m from sale
Synlait Milk (ASX: SM1) ended the 12 months to 31 July 2026 with a markedly stronger second half after operational stability improved manufacturing performance following a difficult opening six months.
Reported EBITDA moved from a NZ$34.7 million loss in the first half to NZ$42.8m in the second, while reported net profit after tax improved from a NZ$80.6m loss to a NZ$5.2m profit.
Full year revenue reached NZ$1.94 billion, reported EBITDA was NZ$8.1m, and underlying EBITDA was NZ$46.3m, with the company recording a reported NPAT loss of NZ$75.4m.
Synlait also completed 17 major projects during its winter shutdown, strengthened frontline leadership and maintenance practices, and introduced additional quality controls as part of its work to stabilise operations at Dunsandel.
Second-Half Recovery
Manufacturing disruption, production plan changes and higher costs weighed heavily on the year, particularly across Advanced Nutrition and Ingredients, before more stable operations supported better performance through the second half.
Advanced Nutrition revenue fell 1% and gross profit declined 78% as manufacturing inefficiencies, enhanced quality controls, and lower lactoferrin production affected returns, while Ingredients revenue decreased 15% to NZ$574.7m and gross profit fell 26% to NZ$9.7m.
Consumer revenue rose 32% and gross profit increased 32% to NZ$51.7m, while Foodservice revenue climbed 62% and delivered its first full year of positive gross profit at NZ$11m after volume growth, improved pricing, and expansion across overseas markets.
“The operational and financial results for the second half show Synlait is making progress, but we are not getting ahead of ourselves,” acting chief executive officer Leon Fung said.
“Our focus is on working carefully to ensure Synlait’s recovery continues—we have plans to navigate the challenges ahead and rebuild Synlait with diversified revenue streams, so the company is more resilient and better positioned for the future.”
Balance Sheet and Growth Priorities
The sale of Synlait’s North Island assets generated NZ$295.7m of cash inflows and helped reduce net debt to NZ$215m, while the year’s reported result included a NZ$26m gain on the transaction.
Synlait refinanced NZ$320m of syndicated banking facilities with nine banks on 30 June 2026 and extended its NZ$130m shareholder loan from Bright Dairy International Investment for a further 24 months to July 2028.
Revenue diversification is now centred on Advanced Nutrition, Ingredients, Foodservice, and Consumer, with signed purchase orders secured from a new Middle Eastern infant nutrition customer for commercial supply in 2027 and additional opportunities progressing in Southeast Asia.
The final base milk price for the 2025/26 season was NZ$9.69 per kilogram of milk solids, with average incentives of NZ$0.38/kgMS taking the total average payment to farmers to NZ$10.07/kgMS, the second-highest in Synlait’s history.
Synlait, which has moved into a five-month transition ahead of changing its financial reporting balance date to 31 December, will not provide quantitative earnings guidance for the interim period because of its short and non-comparable nature.
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