Synlait Milk expects its first half of FY24 to deliver a loss in the range of $17-$21 million due to increased costs and margin changes. Its HY23 net profit after tax (NPAT) was $4.8 million.
While the company said the figure was subject to further review and possible adjustments, HY24 had been impacted by increased financing and operational costs, and Ingredient and Advanced Nutrition margin reductions.
In September 2023, Synlait forecast FY24 earnings before interest, taxes, depreciation, and amortisation (EBITDA) would improve on FY23. It has revised that expectation, saying FY24 will be “broadly flat or down on FY23”.
Synlait and The a2 Milk Company are currently in arbitration over a2MC’s decision to cancel Synlait’s exclusivity contract to produce its Stages 1-3 a2 Platinum and China label infant formula.
