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

 


No float yet for Synlait Milk

No float yet for Synlait Milk

By Pattrick Smellie

Dec 5 (BusinessDesk) - Synlait Milk's Chinese and New Zealand shareholders still want to list the company's shares on the NZX, but there will be no float in the near future, says the Dunsandel milk processor's chief executive, John Penno.

"At some stage, it (a share float) is on the agenda in that both shareholders believe long term it's the best place to have it sitting," he told BusinessDesk after Synlait Milk announced a maiden profit for the year to July 31 of $6.3 million.

Plans to float the company with a $150 million initial public offering were abandoned three years ago for lack of investor appetite after the global financial crisis and Chinese food producer Bright Dairy came on board as 51 percent shareholder, with Synlait Ltd holding the other 49 percent.

Bright Dairy said at the time it would be considering a share market float within three to five years.

However, Penno said for the moment the company was paying no dividends and reinvesting profits back into the business, and that expansion plans flagged in this year's annual report would be funded from a mixture of retained earnings, new capital from existing shareholders and debt.

"We are a young fast-growing company," said Penno. "We are quite comfortable leaving it for the time being."

Synlait Milk's first profit was earned on total revenues of $376.8 million, up 26 percent on the previous year. The company's accounts show it is employing property, plant and equipment valued at $214.1 million, up from $178.2 million in the previous financial year.

That reflects the company's investment in a purpose built infant formula plant, and upgrades to drying plant to allow production of "growing up" milk powders and high-value milk protein concentrate.

The company sees further opportunities for near term expansion, including installation of packaging plant for consumer goods. Synlait Milk is positioning itself as a supplier to rather than competitor of major dairy brands in export markets, particularly China.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news