Synlait Milk (ASX:SM1) expects its full year 2020 earnings guidance to be between $70 million and $85 million net profit after tax (NPAT).
The previously announced earnings guidance was for profits to continue to grow in FY20, with the rate of profitability increasing at least at a similar rate to FY19 over FY18. Current information now indicates this rate of growth will not be achieved.
This is due to significantly lower than anticipated infant base powder sales due to China infant nutrition market consolidation.
And lactoferrin prices being more volatile than previously anticipated.
They expect its HY20 NPAT to be in the range of $26.5 million to $28.5 million for the six months ended 31 January 2020. Synlait’s HY19 NPAT was $37.3 million.
Shares in Synlait Milk (ASX:SM1) closed 2.55 per cent higher at $8.05 yesterday