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

 


Synlait Milk revises FY2014 forecast earnings

Synlait Milk revises FY2014 forecast earnings

A reduced advantage from a favourable product mix in the second half of the year, and a consistently high New Zealand foreign exchange rate has resulted in a reduction in forecast net profit after tax of approximately $7.5 million for the financial year.

Synlait Milk Chairman Graeme Milne says as a result the forecast FY2014 net profit after tax has been revised from a range of $25.0 to $30.0 million to a range of $17.5 to $22.5 million. The prospectus forecast is $19.8 million.

“We had been expecting to maintain the benefits of a very favourable product mix for the remainder of this financial year, however the exceptional market conditions experienced in the first half of the year have moderated,” said Mr Milne.

International commodity price volatility coupled with a high New Zealand foreign exchange rate has resulted in the forecast milk price for the FY2014 season being expanded from a range of $8.30 to $8.40 per kgMS to $8.20 to $8.40 per kgMS.

The new season forecast milk price for FY2015 is $7.00 per KgMS.

Synlait Milk Managing Director John Penno says despite challenging market conditions the Company’s financial performance remains on track.

“The infant formula and nutritional market continues to prove challenging due to regulatory changes in China and it is clear that we will not meet our volume targets for this financial year. However, the development of this business in key markets outside of China with our tier one multi-national companies continues to be strong and we remain confident of meeting our long term objectives.

“China remains an important market for us. We are confident of receiving the required Chinese regulatory approval to export finished infant formula into China following the approval of our Risk Management Plan by MPI for our dry blending and consumer packaging facility. Construction of this facility is scheduled for completion in June 2014.

“Along with this facility our other growth initiatives are on track. Commercial production of the high-value product, lactoferrin, commenced in April,” said Mr Penno.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Christchurch: New Lyttelton Cruise Ship Berth To Be Built

A new $56 million cruise ship berth will be built in Lyttelton with the plans released by the Lyttelton Port Company today. More>>

Constructions Builds: Consents Top $2 Billion For The First Time

Building consents reached a record $2 billion in March 2017, boosted by new homes and several big non-residential projects, Stats NZ said today. This was up 37 percent compared with March 2016. More>>

Other Stats:

Health: Work Underway To Address Antimicrobial Resistance

As part of a global response the Ministries of Health and Primary Industries have today jointly published ‘Antimicrobial Resistance: New Zealand’s current situation and identified areas for action’ to respond to the changing pattern of antimicrobial resistance in New Zealand. More>>

ALSO:

Employment: Vodafone Announces Family Violence Policy To Support Team

From today, any of Vodafone’s 3,000 workers affected by family violence will be eligible for a range of practical support, including up to 10 additional days of paid leave per year. More>>

Burning Up Over Saturn: Cassini's Grand Finale

With propellant running low, NASA scientists are concerned that the probe might accidentally crash into one of Saturn’s nearby moons, which could contaminate it with Earthling bacteria stuck to the spacecraft. Instead, the spacecraft will be safely "disposed" in Saturn's atmosphere. More>>

ALSO:

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news