Synlait Milk‘s net loss worsened to NZ$182.1 million in the last fiscal year, which includes a $114.6 million non-cash impairment charge against its long-term assets.
The dairy producer attributed the impairment charge to a revised view of future demand phasing and continued underutilisation of the North Island facilities.
Meanwhile, revenue rose 2 per cent to $1.64 billion.
“Synlait began FY24 with too much production capacity, unsustainably high levels of debt, significantly higher interest rates, and sharply declining demand for infant formula at a macro level,” said Grant Watson, Synlait CEO.
“Although those challenges are evident in the year’s result, we begin FY25 with new momentum and a stronger financial foundation.”
Synlait offered a one-off 0.20 cents per kg MS payment to all South Island farms to retail milk supply. Moreover, North Island farmer suppliers will receive a one-off 0.05 cents per kg MS payment.
The company intends to accelerate volume growth in its advanced nutrition and food service businesses moving forward.
