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

 


Synlait Milk Posts $6.3 Million Net Profit

MEDIA RELEASE

Embargoed until 5 December 2012


Synlait Milk Posts $6.3 Million Net Profit for 2012 Financial Year

Canterbury milk nutrition company Synlait Milk posted a $6.3 million profit after tax for the year ending 31 July 2012.

The company had a turnover of $377 million in its fourth year of operation, an increase of $78 million on the previous year, driven primarily by substantial growth in the company’s milk powder ingredients business.

Chief Executive, Dr John Penno says 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.

“We were very pleased to achieve a solid profit while providing a very competitive milk price to our milk supply partners. It is even more pleasing that this came about in a year when our volume of ingredient powders has grown by 50 percent, and we were commissioning our new infant formula capable drier,” said Dr Penno.

The company paid its milk suppliers a total average milk price of $6.22/kg MS.

The company’s milk volume grew from 343 million litres in 2011 to 498 million litres in 2012, with 40 new farms being contracted for supply. The additional milk processed lifted manufactured volumes from 54,414 metric tonnes in 2011 to 81,398 metric tonnes in 2012.

In 2012 Synlait Milk expanded its operation to include a purpose built infant formula plant. The company also upgraded its existing spray drier to allow for the production of growing up milk powders, and its special milks drier was upgraded to produce high-value milk protein concentrate.

“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,”

“The company is now positioned at the premium end of the highest value milk protein markets. Our partnerships with our customers, milk suppliers, and staff continue to mature, and our focus on continuous improvement and quality is yielding tangible performance improvements. This has created the solid business platform that we need to build our value-added business from,” said Dr Penno.

Dr Penno says that while Synlait Milk is firmly focused on further improving its performance, it is also considering future requirements, primarily being driven by market demand. This includes planned investment in consumer packaging facilities and, in time, increased scale through additional processing.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news