SML
02/12/2014 15:04
MEETING
NOT PRICE SENSITIVE
REL: 1504 HRS Synlait Milk Limited (NS)
MEETING: SML: Shareholders pleased with Synlait Milk results
Shareholders who attended Synlait Milk's Annual Meeting of Shareholders today
were pleased with the company's solid financial performance and continued
progress in the 2014 financial year.
Managing Director Dr John Penno discussed the annual results and outlined the
focus for the 2015 financial year (FY).
"We're pleased that we delivered on the promises we made last year by meeting
our prospective financial information (PFI) forecasts. Our $19.6 million net
profit after tax (NPAT) was in line with our PFI forecast of $19.7 million,
and that's a good result for our shareholders," said Dr Penno.
An increase of 43% in revenue to $600 million from $420 million in FY2013 was
welcome news to shareholders, as it was above and beyond the PFI forecast of
$524 million.
"We also completed three of six major capital growth projects throughout the
year, which will provide the plant and infrastructure our business needs to
achieve our goal of delivering the most valued milk solutions in the world,"
added Dr Penno.
Chairman Graeme Milne outlined several challenges Synlait faced in FY2014.
"It was a good year for dairy farmers as commodity prices were relatively
high, but their volatility throughout the year made it difficult to
consistently achieve profit margins," said Mr Milne.
"Changes to infant formula market regulations in China added further
complexity, however we are now in a strong position to take advantage of
increased sales in this market."
Synlait's focus for the 2015 financial year was well received by
shareholders.
"It's still early in the season, but we expect the benefit of increased
infant formula and nutritional sales to be largely balanced out by increased
operating and funding costs," said Mr Milne.
"We intend to update our milk supply pricing in January 2015, as indicated
previously, and we will update our FY2015 forecast to the market in March
2015 with the announcement of our interim results."
"Executing our remaining capital growth projects, including a third spray
drier and a large quality testing laboratory, will be the most visible
progress at our Dunsandel site. Increasing sales volumes with key customers
and growing our infant formula and nutritional sales will be the key focus
for the current year."
During the meeting all resolutions put to shareholders were passed. This
included the re-election of Bill Roest as a Director, increases to Directors'
remuneration and a policy amendment to review Directors' remuneration
annually.
The Board has determined in accordance with NZX Listing Rule 3.3.3(a) that
each of the following Directors is an Independent Director:
- Graeme Milne
- Bill Roest
- Sam Knowles
End CA:00258415 For:SML Type:MEETING Time:2014-12-02 15:04:02
