Synlait Milk Limited Analysis

Overview

About Synlait

At Synlait we combine expert and sustainable farming practices with state-of-the-art manufacturing processes to produce a range of nutritional milk products that provide genuine benefits for human health and wellbeing.

Our purpose Doing Milk Differently For A Healthier World is driven by being different, essential nutrition and sustainability. Our disruptive, innovative spirit combined with resolute determination to do the right thing for planet and people sets us apart from the competition.

Founded in 2000, Synlait is based in Dunsandel, Canterbury and employs more than 1,000 people.

Synlait listed on the NZX in July 2013. This was followed by a compliance listing on the ASX in November 2016. In 2019, Synlait joined the NZX Debt Market, issuing NZ$180 million of unsecured, subordinated, fixed rate bonds.

Our locations

Today we have eight sites based across seven locations in New Zealand and China:

• Auckland: blending and canning facility
• Pokeno: second infant-capable manufacturing facility
• Palmerston North: research and development centre at Massey University
• Christchurch: administration office and Dairyworks
• Dunsandel: fully integrated manufacturing facility and administration office
• Temuka: Talbot Forest Cheese manufacturing
• Shanghai: sales office

Our products

We produce a range of added-value milk powders and nutritional products, such as retail-ready infant formula. Our customers are leading global health and nutrition companies, with established brands and strong retail distribution channels.

In early April 2019 we began manufacturing fresh milk and cream in our newly commissioned Advanced Liquid Dairy Packaging Facility at Dunsandel.

As part of our Everyday Dairy growth strategy, Talbot Forest Cheese joined the Synlait family in August 2019, followed by Dairyworks in April 2020. Talbot Forest Cheese (a speciality cheese manufacturer and distributor) is based at Temuka in South Canterbury and Dairyworks (supply iconic and much-loved New Zealand brands to the consumer and foodservice markets) in Christchurch.

Our farmer suppliers

Synlait has a network of nearly 300 farmer suppliers in two of New Zealand?s major dairy farming regions; Canterbury and Waikato.

Our Synlait journey begins on farm with top quality milk and continues throughout its manufacturing and supply chain process to its customers, and then onto their consumers. As a key part of that journey, Synlait is proud of its certified best-practice dairy farming programme, Lead With Pride(TM) which supports its farmer suppliers to achieve farming excellence.

For more information about Synlait, visit: www.synlait.com

Performance

The following information was extracted from Synlait Milk Limited's Annual Report, released 29 September 2025

FY25 results overview

Synlait CEO Richard Wyeth commented: “The numbers we are presenting today reflect the impact of manufacturing challenges at Dunsandel. These issues, which are now largely behind us, were complex and impacted our ability to continually deliver product on time, in spec, and at scale.”

“Synlait’s assets are world-class and our people’s response was positive. Were it not for these challenges, which resulted in costs, our result today would have reflected further progress in Synlait’s business recovery.”

Today’s adjusted bottom line is a net profit after tax of $0.8 million (unadjusted ($39.8 million)). This is a significant improvement on FY243, with the results showing signs of encouragement:

• A 55% reduction in our net debt from $551.6 million to $250.7 million. As noted above, the North Island sale will strengthen the company’s financial position, with the proceeds used to significantly reduce debt.
• Improvements in trading performance resulting in FY25 unadjusted EBITDA increasing by $54.8 million on FY24.
• A turnaround in our Ingredients business from a loss of ($13.5) million to a gross profit of $13.1 million
• A 29% increase in our Advanced Nutrition business gross profit to $95 million.
• A 92% lift in Foodservice production volumes, with improved margins although further gains are required to deliver profitability. We sold 8.4 million 1-litre bottles of cream last year.
• A 28% uplift in our Consumer business unit gross profit to $39 million. This was driven by growth in export markets including entry to Thailand and Vietnam.
• A new record milk price for the 2024/2025 season of $10.16 per kilo of milk solids, which will see Synlait’s estimated contribution to New Zealand’s rural economy in excess of one billion dollars, including payments to our farmers.4