Selwyn Times: June 02, 2021

SELWYN RURAL LIFE
Wednesday June 2 2021 Selwyn Times 33
Synlait responds to
Covid conditions
Major milk manufacturer and retailer
Synlait continues to whether the
international impact of a Covid-related
downturn.
In updated full-year guidance, the NZXlisted
exporter now expects to make a net
profit after tax loss of between $20 million
to $30 million
Interim CEO John Penno said the
estimate was based on a review of the
“impact of previously disclosed risks
affecting Synlait’s performance”, including
ongoing shipping delays which would
result in the sale of some ingredient
products occurring after the FY21 balance
date.
The company also expected lower
prices for ingredient products than
Synlait would normally expect to achieve
because of a combination of sales phasing,
volume pressure; and the adoption of a
more conservative approach to year-end
inventory volumes and valuation.
Penno said Synlait’s banking syndicate
continued to be supportive and had
granted a waiver of relevant covenants
in FY21. The company was working
constructively with the syndicate to
ensure it has the appropriate funding for
FY22. Synlait did not intend to undertake
a capital raising.
Commenting on overall performance,
Penno said “I am disappointed to share
this news with our investor base. As a
team we are focused on closing out this
year as well as we can, then resetting, and
delivering a much-improved financial
performance in FY22.”
Earlier in May, Synlait announced the
resignation of chief financial officer
(CFO), Angela Dixon.
Dixon had led Synlait through several
market updates and delivered a successful
$200 million capital raise. “On behalf of
our team, I would like to thank Angela for
her contribution and commitment to the
organisation during a difficult period in
Synlait’s history,” Penno said.
Synlait’s General Manager Supply Chain,
Rob Stowell, has stepped in as interim
CFO. Stowell was one of Synlait’s original
employees and has held a variety of roles
within the business, including senior
roles in the finance team. He has been
a member of Synlait’s senior leadership
team for five years.
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