Source: Copyright © 2020 Kalkine Media Pty Ltd
Synlait Milk Limited (NZX:SML) has withdrawn its full-year 2021 earnings guidance. The Company’s delivered its earning guidance in December 2020. A net profit after tax of approximately NZ$37.5 million was forecast. Synlait has stated that this figure is now unattainable.
Several factors are affecting the Company’s confidence to forecast its financial performance.
- The price of wholesale dairy is unpredictably increasing. The average price at the last Global dairy auction is up 15%.
- Disruptions to shipping and cargo handling at NZ ports has affected the Company’s ability to reliable export product.
- Synlait is in the middle of reconfiguring its production levels to meet its new outlook.
On 4 March, at the time of writing, Synlait shares were trading at $3.85.