Synlait result

great result for Synlait - $40.7M NPAT for 1H18.

Bits relevant to A2M -

canned IF sales for 1H18 was 16,839MT with 18,000 MT expected for 2H18. This is in line with the top of range forecast of between 30-35,000 MT for FY18  Synlait gave in their Dec 17 AGM announcement.

The key change though is that the CFDA approval for the other two brands (from New Hope and Bright Dairy) are now not expected to be received until late 2H18 and 1H19 respectively. This means IF production orders for these products won't happen until early FY19. They also say the canned IF for the Munchkin brand have been delayed due to slower than expected regulatory approval for this product but the FDA. So, in other words, no orders from the other two China brands and very little from Munchkin. Pretty much all the production of canned IF for FY18 is going to A2 Platinum. I would also thunk it is quite likely they will go over the 18,000 MT in 2H18 with just A2 IF.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SML/315807/276555.pdf

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SML/315807/276554.pdf