Synlait (SM1) Synlait Milk (SM1) is NZ’s fourth largest milk processor (accounting for ~4% of NZ’s milk intake) and a B2B supplier of dairy ingredients (SMP, WMP & AMF), infant formula (IMF) products and Lactoferrin. SM1 counts global FMCG companies among its client base, including The a2Milk Co (A2M) for which SM1 is the exclusive supplier of infant formula in China, Australia and NZ.SM1’s FY21 performance is reflective of a business that completed the commissioning of major capital works, while experiencing an unfavourable shift in sales mix and the added complexity of unwinding IMF inventory positions accumulated over 2H20-1H21. Looking into FY22-24e, a stabilisation in A2M demand, commencement of a material new nutritionals contract at Pokeno and execution against the consumer based strategy in liquids and cheese are expected to drive a material recovery in operating earnings and the share price.
Buy, Price Target $4.40
https://dpsi7pmz5b6vt.cloudfront.ne...51d439531/Analyst Stock Picks for 2022_SM.pdf
Synlait (SM1) Synlait Milk (SM1) is NZ’s fourth largest milk...
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