Ann: SML Announcement - Supreme Court Update, page-509

Sm1 is about to revise guidance, as I predicted here: 49718611

The Initial report in that thread that guidance would be revised around 30% was dishonest, we are in the situation of beggars cannot be choosers with A2 and our supply agreements. Sm1 will always be squeezed on margins whilst any single customer ever takes more than 30% of production. I predicted a greater than 40% fall in revenues based on inability to downscale several parts of the business, fixed factory and other capital costs and not discounting the historically slow response of the business to external market factors.

It shocks me that the leadership of this business appear to have such little control of the core business. They appear distracted, or overworked. I do not know which it is.

I agree Moneymaker1979, I have been thinking that Synlait is a prime contender for a takeover.
I have not acted on my convictions, as the only recent similar takeover would be that of Mataura Valley Milk by A2 - the businesses are different however my knowledge lacks to the degree that I could not say that they are materially different other than the size of the business. Normally factors of production would benefit a large scale business, however we can see this has not helped Synlait in its' ever-dwindling margins.

Perhaps to turn its' back on A2 would be in the best interests of the business should it be acquired by a large overseas entity, say Nestle or such who would then take the Milk directly from the farm to the boat and package it abroad. Not good for Kiwis, but certainly better for shareholders than anything the current management have done.