Synlait Milk (SML) H2 2026 earnings summary

Executive summary

• FY26 was financially and operationally challenging, but a strong recovery in the second half led to significant improvements in performance and stability.

• The company executed a recovery roadmap focused on stabilizing fundamentals, simplifying operations, and preparing to scale for future growth, including maximizing Canterbury asset returns.

• Sale of North Island assets simplified the business, strengthened the balance sheet, and removed a major drag on performance, with a refocus on the Dunsandel site.

• Revenue diversification advanced, with new customers onboarded in the Middle East and Southeast Asia, and a pipeline of further opportunities.

Financial highlights

• Group revenue increased to $1.94 billion for FY26.

• Reported group EBITDA was $8.1 million; underlying group EBITDA was $46.3 million.

• Net loss after tax was $75.4 million; underlying net loss after tax was $21.6 million.

• Net debt reduced to $215 million, aided by North Island asset sale.

• Second half saw reported EBITDA swing from a loss of $34.7 million in H1 to $42.8 million in H2; NPAT improved from a $80.6 million loss in H1 to a $5.2 million profit in H2.

Outlook and guidance

• No guidance provided for the five-month transitional period (TP26) ending December 31, 2026, due to seasonality and non-comparability.

• Priorities for TP26 include maintaining operational momentum, optimizing product/customer mix, and advancing opportunities in key channels.

• Management is confident that the improved second-half run rate is sustainable and expects further operational and financial improvements.

• Strategy to scale will be delivered in 2027, the first full calendar year.