Synlait Milk swung back to profitability amid a double-digit increase in sales during the fiscal first half.
The company’s revenue for the six months ended January 31 jumped 16 percent to NZ$916.8 million. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 217 percent to $63.1 million, and net profit after tax (NPAT) rose 105 percent to $4.8 million.
Management attributed the improvements to an uplift in advanced nutrition demand, optimisation of North Island operations, higher commodity prices, and cost management.
At the end of the half, the company reduced its net debt by 29 per cent to $391.9 million.
“Given the position Synlait was in 12 months ago, this return to profitability is a considerable commercial achievement,” commented acting CEO Tim Carter.
“Today’s result was delivered through a focus on getting the fundamentals of our operational performance right, seizing opportunities to deliver for customers, and continued cost control.”
For the second half, Synlait expects financial progress to be slower as it balances opportunities and risks related to milk stream returns and foreign exchange. The company targets a closing net debt balance of $250 million to $300 million at the end of the year.
