Synlait Milk (ASX:SM1) reported a 9.6 per cent decline in first half NPAT to $37.3 million, down on last year's $41.3 million.
Revenue lifted 7 per cent to $470.9 million on higher sales volumes across its powders and cream and lactoferrin businesses.
They report that the higher sales volumes were achieved due to their ability to increase production volumes off the same asset base.
They processed 12.4 per cent more milk than it did in the same period last year, producing 90,495 metric tonnes of product.
The company entered into a new pricing agreement with The a2 Milk Company™ (ASX:A2M) last July.
Another factor for the decline is the company not having the benefit of the higher margin sales to their China based customers that they enjoyed in the half year 2018.
Shares in Synlait Milk (ASX:SM1) closed 1.91 per cent higher to $11.18.