Overview of Synlait's half year 2024 financial results

Synlait (ASX: $SM1) has released its financial results for the six months ended 31 January 2024. The company faced challenges during this period as it worked on resetting its operations to achieve strategic objectives and reduce elevated debt levels. The announcement includes details of an amendment to banking facilities and a strategic review of North Island assets, supported by a letter of support from its largest shareholder, Bright Dairy.

Executive commentary on Synlait's performance and strategic focus

Our strategic focus is on Advanced Nutrition and Foodservice, where we have a clear competitive advantage to deliver diversified, high-value growth. It is supported by a well-run Ingredients business enabled by our market-leading Lead With Pride™ on-farm excellence programme. We have built a world-class and highly flexible asset base, and we are well positioned ahead of emerging customer demand trends. Combined with our refreshed leadership team, we now have all of the pieces in place to execute on this strategy and deliver strong returns for our shareholders.

Summary of Synlait's half year 2024 financial results and outlook

Synlait reported a total group revenue of $793.5 million for the first half of 2024, with a total group NPAT of $101.0 million. The company also announced a forecast base milk price of $7.80 kgMS for the 2023/2024 season. Despite facing challenges such as underutilisation of North Island manufacturing facilities and unfavourable market environment for the ingredients business, Synlait remains focused on achieving sustainable, profitable growth across diversified channels, categories, and geographies. The company aims to execute its strategic focus on Advanced Nutrition and Foodservice, leveraging its competitive advantage and world-class asset base to deliver strong returns for its shareholders.