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- Synlait Milk released its FY22 results today (27 September).
- The company also shares its “refreshed” strategy.
Synlait Milk Limited (NZX: SML), the New Zealand-based dairy manufacturer announced its FY22 results today (27 September 2022). It also announced its strategy, which focuses on the company’s core businesses like Advanced Nutrition, Foodservice, Consumers, and Ingredients.
As per the company, the key takeaways from the results were that it had returned to profitability with EBITDA up from NZ$91.8 million to NZ$129.1 million.
Further, the review of its strategy has been completed, and commercial production for its multinational customers is likely to begin in 2023.
CEO of Synlait, Grant Watson, said that Synlait is well positioned as it entered its second year of recovery. The company has progressed in its strategy and execution, but there is much to do, he said.
The company reported a revenue jump of 21% to NZ$1.66 billion, and net profit after tax (NPAT) was up from NZ$67 million to NZ$38.5 million. EBITDA was up NZ$91.8 million to NZ$129.1 million. Adjusted EBITDA was up NZ$79.8 million to NZ$117.2 million. The company’s debt was down 29% to NZ$341.9 million. The company reported an operating cash flow of NZ$232.9 million and an impairment charge of NZ$12.2 million.
Further, the company reported a gain and lease back of the Auckland land and building of NZ$11.9 million.
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Forecasted average base milk price
Due to continued demand and supply mismatch, the forecast for the average base milk price is NZ$9.50 per kgMS for the 2022/2023 season.
Further, Synlait's “refreshed” strategy was a result of the bottom-up review of SML’s four business units.
Grant Watson, the CEO, further said the refreshed strategy was aimed at creating a greater focus and accountability across Synlait. He said, with a clear strategy and the right leadership, the focus is now on better execution in FY23.
Synlait gave extensive guidance for all its businesses for the full-year FY22. It said:
On Tuesday (27 September 2022), Synlait's stock was trading lower by 5.62% at NZ$3.360, at the time of writing.
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