Synlait Milk has foreshadowed losses in the 2024 financial year of between $17 million and $21m, but that may be subject to further adjustment in the preparation of the interim results, due out on March 25.
The interim result remains subject to review procedures by Synlait’s auditor, and the range excludes any additional adjustments, including accruals, provisions and impairments, which are still being assessed.
The previous guidance for the 2024 interim earnings was that they would be behind those of the first half in FY23, at $4.8m. They are now forecast to be large losses.
Synlait went on to declare a net loss of $4.3m in the 2023 financial year.
The interim earnings this year have been impacted by increased financing and operational costs and reductions on ingredient and advanced nutrition margins.
The directors and senior managers are working on the need to deleverage Synlait’s balance sheet as a priority.
An update will be provided in March.
Synlait’s shares have lost 80% of their value over the past year, and now trade below 80c.