Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Synlait posts $6.3M maiden profit, likely to seek capital

Synlait posts $6.3M maiden profit, likely to seek more capital

Dec. 4 (BusinessDesk) – Powdered dairy products exporter Synlait Milk has turned in a maiden profit of $6.3 million for the year to July 31 and expects to seek fresh capital from its two shareholders as it pursues "further strongly profitable opportunities."

The Dunsandel-based processor added a further 20 supplier farms during the year and processed a total of 498 million litres of milk in the year, compared with 343 million litres the year before, after adding a third drying unit, allowing it to manufacture higher-value nutritional products.

After failing to attract New Zealand investors to a $150 million initial public offering in 2009, Synlait Milk is now 51 percent-owned by the Chinese firm Bright Dairy, with the remainder held by Synlait Ltd, a vehicle representing the company's founders.

"Operating cash flow at just under $30 million is pleasing and planned to continue to grow in the year ahead," said chairman Graeme Milne. "In order to maintain a prudent capital structure, it is likely that Synlait Milk will approach our two shareholders … within the next 12 months for further equity."

These include adding consumer packaging capability, although Synlait Milk continues to see its future as a supplier to rather than competitor of leading brand owners.

Total revenues for the year increased 26 percent to $377 million and the $6.3 million profit compared with a $3.1 million loss the previous year.

Lower prices for milk during the year under review affected selling prices, but also saw the total cost of milk purchased fall from $49.4 million a year earlier to $39.6 million in the last year.

Chief executive John Penno said the company had faced more challenges than it expected implementing a bespoke operational and reporting system, although "most of the problems" had been ironed out by year's end.

There were several areas identified "for business improvement by doing simple things better," Penno said.

"The development of the company’s new adult and infant nutritionals business holds exciting prospects for the future, however it has been its value added and consumer ready milk powders business that delivered the strong financial result last year," Penno said.

“We remain committed to our strategy of developing our value-added and nutritional milk powder business, and building a reputation for quality and technical excellence. Current performance confirms our view that the margins provided in these demanding market segments will be critical to Synlait Milk’s future,” he said.

“The company is now positioned at the premium end of the highest value milk protein markets," he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news