Synlait's FY24 key achievements and financials

Synlait (ASX:SM1) achieved a much-needed balance sheet reset in FY24, supported by a two-step plan underpinned by bank refinancing. The company also settled disputes, including those with The a2 Milk Company, and completed a strategic review focusing solely on producing Advanced Nutrition products. Despite disappointing financial results at a headline level, significant progress has been made in Synlait's business recovery.

Executive commentary on FY24 performance and outlook

The steps taken in FY24, including the balance sheet reset and resolution of disputes, have positioned Synlait to focus on lifting performance and returning to profitability. The company's commitment to regaining farmer suppliers' trust and confidence is evident through additional payments announced today. The focus on customer growth, especially in South East Asia, is expected to drive further progress. Synlait's ambitions to achieve a successful refinance of its banking facilities and improve trading and operational performance are key priorities for FY25.

Summary of FY24 results and outlook

In FY24, Synlait delivered a balance sheet reset, settled disputes, and completed a strategic review to focus on Advanced Nutrition products. Despite disappointing financial results, the company's focus on regaining farmer suppliers' trust, expanding into South East Asia, and retaining milk supply sets the stage for future growth. The company's ambitions to improve trading performance, accelerate volume growth, and refinance banking facilities are key areas of focus for FY25. Synlait's outlook is centered on returning to profitability and achieving business recovery.