SML
30/03/2015 08:55
HALFYR
PRICE SENSITIVE
REL: 0855 HRS Synlait Milk Limited (NS)
HALFYR: SML: Synlait releases Interim Report for 2015 financial year
Synlait Milk has posted a $6.4 million net loss after tax for the first six
months to 31 January in the 2015 financial year (FY15).
This result includes after tax unrealised foreign exchange losses of $6.8
million.
The underlying after tax financial performance of $0.4 million for the period
was lower than expected and primarily due to delays in the shipment of infant
formula and nutraceutical products.
A one-off, after tax product mix benefit of $7.5 million in the first half of
FY14, combined with increased depreciation and interest costs from the
commissioning of three growth initiatives projects in the second half of
FY14, are the primary reasons for a $11.7 million variation between the
underlying FY15 interim result of $0.4 million and the FY14 interim result of
$12.1 million net profit after tax.
Despite an expectation that current market volatility will continue, Synlait
is confident that sufficient committed contracts are in place to achieve a
forecast net profit after tax result of $10 - $15 million for FY15.
Production challenges have occurred in the first year of commercially
producing lactoferrin, a high-value bioactive protein. As a consequence,
there is an increasing risk that the sales target of 15 metric tonnes (MT)
may not be achieved in FY15.
Managing Director John Penno said that although the previous 18 months have
been challenging for the dairy industry, investing in nutritional capacity
and capability is what will create value for the business in the long term.
End CA:00262444 For:SML Type:HALFYR Time:2015-03-30 08:55:13
