Synlait Milk (SML) H1 2026 earnings summary

Executive summary

• Reported a net loss after tax of NZD 80.6 million for the half year, with results impacted by manufacturing disruptions, inventory rebuilds, and a global downturn in whole milk powder pricing.

• Revenue was NZD 949 million, with North Island operations classified as discontinued and sale expected to complete 1 April 2026.

• Net debt increased 88% to NZD 472.1 million, with material uncertainty regarding ongoing access to capital and refinancing.

• A recovery roadmap—Stabilise, Simplify, and Scale—has been launched, with the North Island asset sale to Abbott expected to deliver NZD 307 million and reduce debt.

• No FY 2026 financial guidance provided; focus remains on operational execution and recovery.

Financial highlights

• Underlying EBITDA was NZD 4.1 million, with reported EBITDA loss of NZD 34.7 million; underlying net loss after tax was NZD 27.3 million.

• Revenue was NZD 949 million, but one report notes revenue at NZD 777.6 million due to discontinued operations.

• Operating cash flow was a net outflow of NZD 183.4 million, with gross profit turning negative at NZD (1.4) million.

• Net debt increased to NZD 472.1 million, with loans and borrowings at NZD 504.4 million as of 31 January 2026.

• Milk price forecast for 2025/26 season raised to NZD 9.70, with total forecast including premiums at NZD 10.10.

Outlook and guidance

• No FY 2026 financial guidance provided; leadership is focused on executing the recovery plan and expects a period of underpromising and overdelivering.

• North Island asset sale is expected to close on 1 April 2026, materially reducing debt and removing a loss-making asset.

• Management expects trading performance to recover post-sale, with focus on South Island operations and stable production lines.