Synlait Milk’s Revenue Hits NZD 1.83B, Net Loss Widens 78%
Synlait Milk Limited reported an 11.7% rise in revenue to NZD 1.83 billion for the year ending July 2025, yet its net loss deepened sharply to nearly NZD 40 million, prompting a halt on dividends.
- Revenue increased 11.68% to NZD 1.827 billion
- Net loss from continuing operations widened 78.13% to NZD 39.8 million
- No dividends proposed for the full year
- Net tangible assets per share fell from NZD 2.13 to NZD 1.09
- Full audited financial statements and investor presentation released
Revenue Growth Amid Profit Decline
Synlait Milk Limited has released its full-year results for the 12 months ending 31 July 2025, revealing a complex financial picture. The company achieved a solid 11.68% increase in total revenue, reaching NZD 1.827 billion, a sign of robust sales performance in its dairy products segment. However, this top-line growth was overshadowed by a significant deterioration in profitability.
Deepening Losses and Dividend Suspension
Despite the revenue boost, Synlait reported a net loss from continuing operations of NZD 39.8 million, a 78.13% worsening compared to the previous year. This sharp decline in net profit suggests rising costs, margin pressures, or other operational challenges that have eroded earnings. Reflecting this financial strain, the company has decided not to propose any dividends for the period, signaling a cautious stance on capital returns amid uncertainty.
Balance Sheet and Investor Communications
The net tangible assets per share also took a hit, dropping from NZD 2.13 to NZD 1.09, indicating a reduction in the company's net asset backing per share. Synlait has accompanied its results with a full audited annual report and an investor presentation, which are expected to provide deeper insights into the factors behind the loss and the company’s strategic response.
Looking Ahead
CEO Richard Wyeth and Head of Milk Supply, Strategy & Corporate Affairs Hannah Lynch are positioned to guide stakeholders through this challenging period. Investors will be keenly watching for updates on cost management, operational efficiencies, and market conditions that could influence Synlait’s path back to profitability.
Bottom Line?
Synlait’s revenue growth masks deeper profitability challenges, setting the stage for a critical year ahead.
Questions in the middle?
- What specific factors contributed to the sharp decline in net profit despite revenue growth?
- How does Synlait plan to restore profitability and resume dividend payments?
- What impact will global dairy market conditions have on Synlait’s future performance?
