24 May 2021

Synlait Milk forecasts full-year loss of $20m-$30m

11:57 am on 24 May 2021

Dairy company Synlait Milk is forecasting a significant loss as it continues to be plagued by Covid-19-related disruptions.

The company is now forecasting a full-year loss of between $20 million and $30 million, which compared with last year's $75.2m.

Synlait said shipping delays would result in some sales happening after its balance date.

It said the result would also be affected by lower prices for some products because of timing and an oversupply of product, and a conservative approach it's taking to its stock take of how much product it has and what it will be worth.

"I am disappointed to share this news with our investor base," acting chief executive John Penno said.

"As a team we are focused on closing out this year as well as we can, then resetting, and delivering a much-improved financial performance in financial year 22."

Synlait warned in March that its previous forecast of a halving of its 2020 profit would be unachievable.

One of its major customers, the A2 Milk company, has similarly been forced into downgrading its forecasts because of disrupted markets and problems with its key Chinese market.

Synlait was also hit in April by the surprise resignation of its chief executive Leon Clement after less than three years in the job.

Synlait's shareprice has fallen more than 40 percent so far this year.