Wednesday, July 6, 2022

Synlait posts $6.3M maiden profit

Dairy processing company Synlait Milk has posted a $6.3 million after tax profit for the year ending July 31.

After four years of operation the company had a turnover of $377m, an increase of $78m on the previous year.

That was primarily driven by substantial growth in Synlait’s milk powder ingredients business which has undergone development this year.

Dr John Penno: “Very pleased to achieve a solid profit.”

It has expanded its operation to include a purpose-built infant formula plant while its existing spray drier has been upgraded.

The company paid its milk suppliers an average milk price of $6.22/kgMS.

“We were very pleased to achieve a solid profit while providing a very competitive milk price to our milk supply partners,” Synlait chief executive Dr John Penno said.

“It is even more pleasing that this came about in a year when our volume of ingredient powders has grown by 50% and we were commissioning our new infant formula capable drier.”

More than 40 new farms were contracted for supply in 2012, boosting Synlait’s milk volume from 343m litres in 2011 to 498m litres.

The additional milk processed lifted manufactured volumes from 54,414 tonnes in 2011 to 81,398 tonnes in 2012.

“We remain committed to our strategy of developing our value-added and nutritional milk powder business and building a reputation for quality and technical excellence,” Penno said.

“Current performance confirms our view that the margins provided in these demanding market segments will be critical to Synlait Milk’s future.”

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