Synlait Milk Limited (ASX: SM1) has reported its financial results for the 12 months ended 31 July 2026, revealing a challenging first half was followed by a stronger second half driven by operational stability. Synlait is a New Zealand-based dairy company that processes and supplies a range of dairy products, including infant formula, to global markets. Chair George Adams acknowledged a “difficult year financially,” but highlighted the critical importance of operational stability, alongside the sale of North Island assets and a strong milk price. Acting CEO Leon Fung noted progress from second-half results, focusing on continued recovery and building resilience through diversified revenue streams.
For FY26, Synlait reported an underlying EBITDA of $46.3 million, with a reported net loss after tax of ($75.4 million) and an underlying net loss after tax of ($21.6 million). Revenue reached $1.94 billion, gross profit $37.7 million, and net debt $215.0 million. Operational performance recovered significantly in the second half; Manufactured in Spec (MIS) rose from 91% to 95%, and plan attainment increased from 90% to 103%. This uplift translated into improved second-half financial performance: reported EBITDA shifted from a ($34.7 million) loss in the first half to a $42.8 million profit, and reported NPAT improved from an ($80.6 million) loss to a $5.2 million profit.
Synlait confirmed a final base milk price for the 2025/26 season of $9.69 per kg of milk solids, with total average payments reaching $10.07 per kgMS, marking the second highest in its history. The forecast base milk price for 2026/27 is $9.50 per kgMS. Chair Adams indicated the company, having stabilised and simplified, is exploring strategies to “scale for success” by maximising returns from its Canterbury assets, with details expected in 2027. Furthermore, Synlait announced a change to its financial reporting balance date, moving from 31 July to 31 December. A five-month transitional period will precede the next full financial year. No quantitative earnings guidance will be provided for this period, with focus instead on operational excellence and optimising product mix.
