Synlait Milk (SML) H2 2025 earnings summary

Executive summary

• Entered binding agreement to sell North Island assets, including Pōkeno and Auckland facilities, to Abbott for NZD 307 million (US$178 million), with completion targeted for April 2026 and major shareholder support secured.

• Strategic reset simplifies operations, focusing on South Island/Canterbury, aiming to restore creditworthiness, stakeholder confidence, and operational stability.

• Leadership transition with new CEO Richard Wyeth appointed in May 2025, driving operational stability and culture shift.

Financial highlights

• FY25 revenue reached a record $1.83 billion, up 12% year-over-year.

• Group EBITDA was $50.7 million, up $54.8 million from FY24; underlying EBITDA $107.2 million, up 137%.

• Net loss after tax was $39.8 million, a 78% year-on-year improvement; adjusted net profit after tax was $0.8 million.

• Net debt reduced by 55% to $250.7 million, mainly due to equity raise and improved trading.

• Operating cash flow surged 451% to $165.5 million; gross profit increased to $105.3 million.

• Record milk price for 2024/2025 was $10.16/kg of milk solids, with additional incentives for suppliers.

Outlook and guidance

• No financial guidance for FY26 due to the scale of the strategic reset and asset sale; updated strategic plan expected by March 2026.

• FY26 focus is on executing the North Island sale, operational stability, and simplification.