Synlait flags deeper half-year loss as it resets around Canterbury base

The latest update is out from Synlait Milk Ltd. ( (AU:SM1) ).

Synlait Milk has warned that its financial performance for the six months to 31 January 2026 will be significantly weaker than the prior year, as it works through the operational and financial fallout from earlier manufacturing issues and restructures its business around its Canterbury operations. The company expects underlying EBITDA for the half year to range from breakeven to NZ$5 million, compared with a reported EBITDA loss of NZ$28 million to NZ$33 million and an underlying net loss after tax of NZ$33 million to NZ$38 million, driven by elevated costs from rebuilding inventory, margin pressure from increased raw milk sales, and lower returns from its commodities portfolio. Synlait says the planned sale of its North Island assets, due to complete on 1 April 2026, will materially strengthen its balance sheet by reducing debt and marks a “reset” of its strategy, but management cautions that the financial recovery and return to sustainable profitability will take at least 12 months, with an insurance claim for past losses still pending final assessment and settlement.

The most recent analyst rating on (AU:SM1) stock is a Hold with a A$0.72 price target. To see the full list of analyst forecasts on Synlait Milk Ltd. stock, see the AU:SM1 Stock Forecast page.

More about Synlait Milk Ltd.

Synlait Milk Limited is a New Zealand-based dairy processor focused on manufacturing value-added dairy products, including infant nutrition and ingredients, with core operations centred in Canterbury. The company supplies domestic and international customers and is reshaping its footprint by divesting North Island assets to concentrate on its Canterbury manufacturing base and operational improvement.

Average Trading Volume: 18,881

Technical Sentiment Signal: Sell

Current Market Cap: A$328M

See more data about SM1 stock on TipRanks’ Stock Analysis page.