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Summary
- Synlait Milk Ltd (ASX:SM1 NZX:SML) said that it has downgraded its full-year (FY21) guidance.
- The food & beverages firm said that the decision to alter its guidance was on account of the expectations of shipping delays and lower prices for ingredient products.
- Synlait said that it would not enter the process of capital raising.
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Source: © Herrbullermann | Megapixl.com
In FY21, Synlait now sees a net profit after tax (NPAT) in between AU$20 million and AU$30 million.
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Synlait said that it would not enter the process of capital raising.
Source: ©Miflippo | Megapixl.com
Company statement
Commenting on the development, Synlait CEO John Penno said that he was disappointed to share the news about downgrade with company’s investors. Penno also said that the company was focused on closing out this year on a strong note and, then reset, and deliver an improved financial performance in FY22.
Stock performance
On Friday, 21 May 2021, the shares of Synlait closed at AU$2.99, up 0.21 points, or 7.55%, as against the previous closing on Thursday, 20 May 2021. On NZX, the Synlait, shares settled down 3.23% at NZ$3 on Friday, 21 May 2021 as against the last closing on Thursday, 20 May 2021.
Synlait competes with Woolworths Group Ltd (ASX:WOW), Coles Group Ltd (ASX:COL), Coca-Cola Amatil Ltd (ASX:CCL), Treasury Wine Estates Ltd (ASX:TWE) and Metcash Limited (ASX:MTS), among others in the consumer sector.
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Meanwhile, the company posted a 19% revenue rise of NZ$664.2 in the six-month ended 31 January 2021.