SML
08/12/2015 14:58
MEETING
NOT PRICE SENSITIVE
REL: 1458 HRS Synlait Milk Limited (NS)
MEETING: SML: Greater Year on Year Performance for Synlait
Synlait Milk's financial performance in FY16 will reflect strong growth in
nutritional sales volumes and showcase the benefits of a value added
strategy.
Shareholders were told today at Synlait's 2015 Annual Meeting the focus for
the current financial year is on developing nutritional and infant formula
products with key customers.
"With the successful commissioning of our third large scale spray dryer in
September and current increases in the sales volume of consumer packaged
infant formula, I stand by my previous statement that our profitability will
be in advance of anything achieved to date," said Graeme Milne, Synlait
Milk's Chairman.
Mr Milne discussed global factors behind the decreases in international dairy
market pricing and pointed out prices since 31 July 2015 have decreased
further to unsustainably low levels from a New Zealand farming perspective.
"It's important to understand our profitability is not directly affected by
international dairy prices. It impacts our revenue, but the value we create
by differentiating milk inside the farm gate and throughout the manufacturing
process creates a margin for our business that is essentially independent of
the global pricing of commodities," said Mr Milne.
"This margin is most evident in our nutritional products. The highlight in
this category right now is consumer packaged infant formula, which we expect
to increase fourfold in volume in FY16."
Managing Director and Chief Executive Officer Dr John Penno pointed to the
completion of Synlait's growth initiative programme as a key milestone in the
business' strategy to make more from milk.
"We're now geared up to achieve our strategy. With one of the largest and
highest specification infant formula production sites globally, we've created
an integrated supply chain from source to our customers," said Dr Penno.
"We will continue to partner with leaders in the infant formula industry,
developing strong customer relationships that support our growth targets both
in FY16 and the future."
Dr Penno invited shareholders to focus on the volume of nutritional sales as
a key performance indicator for Synlait in FY16.
"Our total sales volume is set to grow from FY15's 97,800 MT to 122,500 MT in
FY16. More than half of that growth will be the result of increased
nutritional sales in consumer packaged infant formula, which carries a
significant benefit in terms of gross margin."
During the meeting all resolutions put to shareholders were passed. This
included the re-election of Graeme Milne as a Director and that there be no
changes to Directors' fees from 1 April 2016.
A change in one of Bright Dairy's appointed Board Directors was also
announced with Mr Zongbo Dong announcing his retirement from his corporate
and professional roles. The Chairman praised Mr Dong's service and dedication
to Synlait Milk - after more than five years on both its Board and Audit &
Risk Committee. Mr Dong is replaced by Mr Qikai (Albert) Lu as one of the
Bright Dairy appointed Directors.
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; and
- Sam Knowles
For more information please visit www.synlait.com or contact:
Dan Walraven
Communications Advisor, Synlait Milk
P: +64 27 836 7532
E: [email protected]
End CA:00274815 For:SML Type:MEETING Time:2015-12-08 14:58:14
