Synlait Milk (SML) H2 2025 earnings summary

Executive summary

• FY 2025 featured a profitable first half and a challenging second half, with a return to profitability followed by operational setbacks.

• Entered a binding agreement to sell North Island assets to Abbott for NZD 307 million (US$178M), targeting completion by April 2026, with major shareholder support and subject to regulatory and shareholder approvals.

• Proceeds from the sale will be used to pay down debt, aiming for a largely debt-free position by end of FY 2026 and a strategic focus on South Island operations.

• Leadership transition with a new CEO appointed in May 2025, focusing on operational stability, reducing complexity, and resetting company culture.

• Strategic reset aims to restore creditworthiness and stakeholder confidence.

Financial highlights

• FY25 revenue reached a record $1.83 billion, up 12% year-over-year.

• Group EBITDA was $50.7 million, with underlying EBITDA at $107.2 million, up 137% from FY24.

• Net loss after tax was $39.8 million, a 78% year-on-year improvement; adjusted net profit after tax was $0.8 million.

• Net debt decreased by 55% to $250.7 million, the lowest since FY18, mainly due to an equity raise and improved trading.

• Operating cash flow surged 451% to $165.5 million; gross profit increased to $105.3 million.

Outlook and guidance

• No financial guidance for FY 2026 due to the scale of the strategic reset and asset sale; updated strategic plan expected by March 2026.

• FY26 focus is on executing the North Island sale, operational stability, financial resilience, and simplification.