Synlait Milk Limited (Synlait) has announced its half year result for the six months ended the 31st of January 2026.
CEO Richard Wyeth said the numbers were frustratingly disappointing and were the result of a period in which Synlait faced multiple headwinds and had little choice but to deal with them.
They reflect a severe lack of optionality, not effort, and they do not define the company’s future, although recovery will take time.
Alongside the result, Synlait has released ‘Stabilise, Simplify and Scale’, the company’s roadmap to recovery.
“We know, like us, those who support Synlait are hungry for positive financial performance. Unfortunately, we cannot present that today," said Board Chair George Adams.
"Instead, we are sharing the roadmap designed to reposition Synlait for success. This begins with the sale of the company’s North Island assets, and we are on track to complete that next week.”
Financial results at a glance
- A reported EBITDA loss of (NZD 34.7 million), with underlying EBITDA of NZD 4.1 million.
- A reported net loss after tax of (NZD 80.6 million), with an underlying net loss after tax of (NZD 27.3 million).
- Net debt of NZD 472.1 million – an increase of 88 percent.
- Revenue of NZD 949 million – an increase of NZD 32.3 million.
- Gross profit of NZD 3.1 million – a decrease of NZD 83.9 million.
The forecast base milk price for the 2025/26 season is NZD 9.50 per kg MS, with additional premium payments taking the total forecast average milk payment to NZD 9.90 per kg MS.
At a macro level, the result is impacted by three core issues:
- The need to adjust the company’s manufacturing plan.
- Lower returns in the ingredients business unit.
- A decision on tax assets.
Points one and two delivered a dairy processor’s perfect storm. In summary, it was a lack of choices that shaped Synlait’s first-half performance. The third point is that Synlait has taken a conservative approach in not recognising further deferred tax assets arising from unused tax losses beyond those recorded at 31 July 2025.
The challenges that impacted HY26
The manufacturing challenges in Dunsandel that Synlait reported in July 2025 necessitated rebuilding customer inventory.
Synlait adjusted its manufacturing plan to enable teams to focus on this catch-up production. The revised plan resulted in Synlait having surplus milk, particularly during peak season. Following an assessment of the plan to rebuild customer inventory, Synlait sold the excess milk.
A number of the milk sales did not go to plan, requiring Synlait to pause catch-up production to process the unsold milk. Whole milk powder (WMP) is the only ingredient that can be produced under these dryer configurations.
To deliver the perfect storm, the price of WMP decreased sharply at the end of the 2025 calendar year, resulting in significant losses in Synlait’s Ingredients portfolio.
Synlait’s roadmap to recovery
Synlait’s recovery plan contains three interconnected horizons that will be delivered at pace. These are:
- Stabilise | Position for future growth - Delivery operational stability that meets customer expectations, strengthens financial resilience and builds greater optionality.
- Simplify | Action transformation - Align priorities, sharpen capability, and grow high-margin products from existing assets to lift profitability.
- Scale | Accelerate growth - Expand markets, channels and customer relationships. Execute future growth opportunities.
Chair George Adams said there is a lot to do to cement Synlait’s recovery.
“Behind our roadmap sits a real determination to ensure the coming 12 to 24 months will be seen as a period where Synlait under-promised and over-delivered.”
CEO Richard Wyeth added that the core takeaway from this result was that it did not reflect Synlait’s future. Next week’s North Island assets sale is on track to deliver a stronger and simpler Synlait. From there, the company will focus on further improving operational stability and creating greater optionality to get the most out of its world-class South Island assets.
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