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) has this morning (again) downgraded its FY23 earnings guidance range to between a net loss of -NZ$5m and a net profit of NZ$5m – this is a -NZ$20m downgrade from its prior FY23 profit guidance range of NZ$15-25m (which was reiterated on 27 March 2023).</li><li>The driver of the downgrade (NZ$16.5m) primarily relates to further Advanced Nutrition demand reductions (mostly from SML’s key customer, The a2 Milk Company [ATM]).</li><li>SML has received amendments to three of its five banking covenants for the FY23 testing period (31 July 2023) and reiterates prior commentary that it is “not considering an equity capital raising as part of the capital strategy review.”</li></ul>

Synlait Milk (SML) has this morning (again) downgraded its FY23 earnings guidance range to between a net loss of -NZ$5m and a net profit of NZ$5m – this is a -NZ$20m downgrade from its prior FY23 profit guidance range of NZ$15-25m (which was reiterated on 27 March 2023).The driver of the downgrade (NZ$16.5m) primarily relates to further Advanced Nutrition demand reductions (mostly from SML’s key customer, The a2 Milk Company [ATM]).SML has received amendments to three of its five banking covenants for the FY23 testing period (31 July 2023) and reiterates prior commentary that it is “not considering an equity capital raising as part of the capital strategy review.”

Synlait Milk (SML): Guidance Downgrade (Again!)