New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Synlait Milk (SML) reported a challenged FY24 result. Reported NPAT loss was -NZ$182m, including a NZ$115m impairment of its North Island assets, while normalised NPAT was a loss of -NZ$60m.</li><li>Net debt was NZ$551m (1H24 of NZ$559m, and FY23 of NZ$413m). Divisionally, the weakness versus FY23 was particularly acute in its Ingredients and Advanced Nutrition segments, reflecting significant gross margin headwinds, not helped by the material earnings drag from its North Island assets.</li><li>Looking ahead, SML has not provided FY25 guidance, but has stated a FY25 net debt target of NZ$200m–NZ$250m, and net debt to EBITDA gearing below 2.5x (senior debt only). </li></ul>

Synlait Milk (SML) reported a challenged FY24 result. Reported NPAT loss was -NZ$182m, including a NZ$115m impairment of its North Island assets, while normalised NPAT was a loss of -NZ$60m.Net debt was NZ$551m (1H24 of NZ$559m, and FY23 of NZ$413m). Divisionally, the weakness versus FY23 was particularly acute in its Ingredients and Advanced Nutrition segments, reflecting significant gross margin headwinds, not helped by the material earnings drag from its North Island assets.Looking ahead, SML has not provided FY25 guidance, but has stated a FY25 net debt target of NZ$200m–NZ$250m, and net debt to EBITDA gearing below 2.5x (senior debt only). 

Synlait Milk - FY24 Result — A Challenging Year