Synlait Milk Limited reports revenue of US$550M in H1 2026

NEW ZEALAND – Synlait Milk Limited has reported a revenue of US$550 million (NZ$949 million), in its half-year results for the six months ended 31 January 2026.

The EBITDA loss is US$20.23 million (NZ$34.7 million), with underlying EBITDA of US$2.39 million (NZ$4.1 million).

Reported net loss after tax is US$46.97 million (NZ$80.6 million), with an underlying net loss after tax of US$15.83 million (NZ$27.3 million).

Net debt is $472.1 million, an increase of 88%, while Gross profit is US$1.80 million (NZ$3.1 million), a decrease of US$48.66 million (NZ$83.9 million).

The forecast base milk price for the 2025/26 season is NZ$9.50 per kg MS, with additional premium payments taking the total forecast average milk payment to NZ$9.90 per kg MS.

CEO Richard Wyeth said: “The numbers we are presenting today are frustratingly disappointing. They are the result of a period where Synlait faced multiple headwinds and had little choice as to how to deal with them. They reflect a severe lack of optionality, not effort, and they do not define the company’s future – although recovery will take time.”

At a macro level, the result is impacted by three core issues: the need to adjust the company’s manufacturing plan, lower returns in the ingredients business unit and a decision on tax assets.

The challenges that impacted HY26

The manufacturing challenges in Dunsandel, which Synlait reported in July 2025, resulted in a need to
rebuild customer inventory.

Synlait adjusted its manufacturing plan to enable teams to focus on this catch-up production. The revised plan resulted in Synlait having surplus milk, particularly during peak season. Following an assessment of the plan to rebuild customer inventory, Synlait sold the excess milk.

A number of the milk sales did not go to plan, requiring Synlait to pause catch-up production to process the unsold milk. Whole milk powder (WMP) is then the only ingredient that can be made due to dryer
configurations.

To deliver the perfect storm, the price of WMP decreased sharply at the end of the 2025 calendar year
resulting in significant losses in Synlait’s Ingredients portfolio.

Stabilise, Simplify and Scale | Synlait’s roadmap to recovery

Synlait’s recovery plan contains three interconnected horizons that will be delivered at pace.

The first plan is Stabilise | Position for future growth. It involves delivering operational stability that meets customer expectations, strengthens financial resilience and builds greater optionality.

The second plan is action transformation. It involves aligning priorities, sharpening capability, and growing high-margin products from existing assets to lift profitability.

The third plan is to accelerate growth. This means expanding markets, channels, and customer relationships. Execute future growth opportunities.

Chair George Adams said there is a lot to do to cement Synlait’s recovery.“Behind our roadmap, sits a real determination to ensure the coming 12 to 24 months will be seen as a period where Synlait under promised and over delivered.”

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