Synlait Milk Has Reported A $28.5 Million Loss For The July Year

Synlait Milk has reported a $28.5 million loss for the July year, due to the collapse in its infant formula sales. The dairy processor expects to return to profitability in the current financial year. Its a $100 million turn around after a net profit of $75.2m in the previous year. Synlait has also appointed Miraka Chief Executive Grant Watson, to replace John Penno as its chief executive – who has been filling in since the departure of Leon Clement earlier this year. Grant Watson, a former Fonterra executive, will join Synlait in January. The company said its nutritional – infant formula – sales were down 35 per cent to 34,362 tonnes while ingredient sales were up 29 per cent to 125,914 tonnes. The company says Synlait’s performance will build into 2023 as its new Synlait Pokeno plant ramps up, and its Liquids and Consumer Foods businesses continue to grow. Synlait Milk was affected when its main customer, a2 Milk, saw its grey market Daigou trading channel from Australia to China disappear as a result of Covid-19 lockdowns. The company says its recovery plan will see Synlait return to similar levels of profitability, operating cash flows, and debt ratios as the Pre covid years.