Synlait Milk Limited (ASX: SM1), a New Zealand-based company specialising in the production of advanced milk nutritionals and dairy products, has provided an update on its financial performance for the six months ended 31 January 2026 (HY26). The company anticipates an underlying EBITDA of between breakeven and $5 million, with a reported EBITDA loss expected to be between -$28 million and -$33 million. Synlait is also forecasting an underlying net loss after tax of -$33 million to -$38 million, and a reported net loss after tax between -$77 million and -$82 million.
The current financial year is set to deliver a crucial reset for Synlait, highlighted by the impending sale of its North Island assets, scheduled for completion on 1 April 2026. The proceeds from this sale are earmarked for significantly reducing the company’s debt, thereby strengthening its overall financial health. With the sale, Synlait aims to refocus its core operations on Canterbury, striving for continuous operational excellence and increased customer diversification to bolster long-term profitability.
Despite resolving prior manufacturing issues at its Dunsandel plant, Synlait continues to grapple with associated cost and operational repercussions. Rebuilding inventory across various product segments necessitated substantial adjustments to manufacturing plans this dairy season, leading to additional raw milk sales during HY26, which negatively impacted margins and operating costs. The company’s first-half performance was also affected by lower returns from its commodities portfolio and a conservative approach to deferred tax assets.
CEO Richard Wyeth acknowledged the disappointing six-month result, but noted progress in operations and a strategy reset. Synlait is actively engaging with its banking syndicate as it works toward completing the North Island asset sale. The company plans to release its half-year results on Monday, 23 March 2026, with further information to be provided at that time.