Synlait shares fall 12% after posting a first-half loss 30 Mar 2015
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
Synlait shares fall 12% after posting a first-half loss; lowers full-year guidance
By Suze Metherell
March 30 (BusinessDesk) - Shares of Synlait
Milk, the dairy company which has taken a cornerstone stake
in Sichuan New Hope Nutritional Foods Co to gain direct
interest in a Chinese infant formula brand, fell 12 percent
after it turned to a loss in the first half due to delays in
infant formula shipments, a decline in dairy prices and
challenges in its value-added production line.
The
Rakaia-based company posted a loss of $6.4 million in the
six months ended Jan. 31, from a profit of $12.1 million a
year earlier, it said in a statement. Sales sank 31 percent
to $197.5 million. The company had a one-time product mix
benefit of $7.5 million in the first half of last year.
The shares fell 36 cents to $2.65, the lowest level
since August 2013.
Last year, the dairy company saw
its exports to China delayed as it waited for a license
under a new Chinese regulatory system, which makes dairy
manufacturers take responsibility for branded products sold
to consumers, meaning only a quarter of forecast sales
volume for bulk infant formula and retail-ready infant
formula had been delivered to date, Synlait
said.
Meanwhile, globally the price of dairy products
more than halved last year, as an oversupply in the market
weighed on demand and pushed down prices. Synlait is looking
to insulate itself against volatility in the commodity
market by producing value-added products, but said it had
challenges in the production of its new lactoferrin protein
which may see the forecast 15 metric tonnes not produced in
the full year.
"The past 18 months have been
challenging for everyone in the dairy industry," chairman
Graeme Milne and chief executive John Penno said in
Synlait's interim report. "While we are expecting a much
stronger performance in the second half of the 2015
financial year, associated with increased sales of our
higher margin infant formula and nutraceutical products, we
expect the current market volatility to continue and have
therefore revised our forecast to a range of $10.0 million
to $15.0 million for the full year to 31 July 2015."
That forecast is below last year's $19.6 million annual net profit.
The company won't pay a first-half
dividend.
Synlait had cash outflows from operating
activities at $62.6 million in the first half, up from last
year’s $8.0 million, which it attributed to falling milk
prices and payouts to dairy farmers.
The stock is
rated an average of 'hold' based on the opinion of two
analysts surveyed by Reuters, with a price target of $3.80.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more