Shares In Synlait Milk Slumped To A Record Low After The Milk Processor Warned Of A Weaker Outlook This Year, Which Could Result In A Loss

Shares in Synlait Milk slumped to a record low after the milk processor warned of a weaker outlook this year, which could result in a loss. Synlait expects to report anything from a loss of $5 million to a profit of $5m. That’s $20m down from its previous expectation for a profit of $15m to $25m, and below last year’s $38.5m profit. The company’s shares dived 21.5% to $1.68 in early afternoon trading on the NZX on Wednesday, having earlier touched a record low $1.56. The stock was the biggest decliner on the share market. It has since come back to $2.14. Synlait attributed $16.5m of the downgrade to weaker demand for advanced nutrition from one of its customers. The a2 Milk Company, admitted that it was the Synlait customer referred to in the announcement saying its surprised at the extent of the reduction in Synlait’s guidance. Shares in a2 Milk were the second-biggest decliner on the NZX, down 5.3% to $5.90.