Synlait Milk
(ASX:SM1) has released its 1H17 results, and its NPAT rose slightly, by 4%, to $10.6 million. The company’s EBITDA was down 5% to $33.3 million.
However, the company says it had “strong sales growth” which drove an improvement in its earnings.
Synlait, which is also listed in New Zealand, reported its gross margin was $43.7 million, which is higher than the prior corresponding period (1H16) by $2 million.
The company also reduced its net debt from $292 million to $147 million during the first half. Synlait says this was driven by operational cash flow and $97.6 million of new equity raised from its rights issue in October 2016.
Synlait says it expects “modest” growth in its full-year profit, and remains confident about its infant formula business and the evolving regulatory environment in China.
This morning, shares in Synlait are trading flat at $3.30.
