Synlait Posts Deep Half-Year Loss and Unveils Three-Stage Recovery Plan

Synlait Milk Ltd. ( (AU:SM1) ) has provided an update.

Synlait Milk has reported a deeply disappointing half-year result to 31 January 2026, posting a reported EBITDA loss of $34.7 million and a net loss after tax of $80.6 million, alongside an 88% jump in net debt to $472.1 million. Revenue rose modestly to $949 million but gross profit slumped to $3.1 million as manufacturing disruptions, surplus milk during peak season, and a sharp fall in whole milk powder prices combined to create what management called a “perfect storm” for its ingredients business.

In response, the company has unveiled a recovery roadmap titled “Stabilise, Simplify and Scale,” aimed at restoring operational stability, improving profitability from existing assets, and pursuing future growth once its foundation is reset. A cornerstone of the turnaround is the imminent sale of its North Island assets, which the board says will deliver a stronger, simpler balance sheet and allow Synlait to focus on maximising its South Island operations, although it has withdrawn full-year 2026 financial guidance as recovery is expected to take time.

More about Synlait Milk Ltd.

Synlait Milk Limited is a New Zealand-based dairy processor focused on value-added milk products and ingredients, operating major manufacturing assets in the South Island. The company supplies dairy ingredients and specialised nutritional products, with a strategy centred on higher-margin offerings and long-term milk supply relationships with farmers.

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