Synlait names new acting CEO as Watson departs
Synlait Milk Limited (ASX:SM1) has announced the resignation of CEO Grant Watson, who led the company through a challenging period of financial restructuring.
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Fonterra expands with NZ$150 million cold storage facility amid strategic growth
Very different news has emerged from two of New Zealand’s dairy majors, Synlait (ASX:SM1) and Fonterra (ASX:FSF).
Read MoreA2 Milk shares plunge on weak outlook
A day after seeing its shares rise nicely on the peace pact with Synlait (ASX:SM1), its once key supplier, A2 Milk (ASX:A2M) saw its shares sold off heavily on Monday after reality hit in the form of a moderately OK 2023-24 results but weak outlook.
Read Morea2 Milk and Synlait end bitter feud
Kiwi dairy groups, a2 Milk (ASX:A2M) and Synlait (ASX:SM1), have kissed and made up after their recent split that nearly pushed Synlait to the wall.
Read MoreSynlait Milk shares surge 52% after key refinancing approval
Synlait Milk (ASX:SM1) shares jumped 52% yesterday after shareholders approved the first step of a complicated refinancing of the struggling company’s debt and finances.
Read MoreHigh-stakes dairy drama
A high-stakes game of dairy "Russian Roulette" is unfolding across the Tasman between struggling Synlait and its once-close buddy and customer (and shareholder), a2 Milk.
Read MoreSynlait’s financial challenges and road to recovery
Another struggling Kiwi-listed company is Synlait (ASX:SM1); its market position has deteriorated with weaker sales, high costs, and a major falling out with its major customer, A2 Milk.
Read MoreSynlait Milk’s profit projections plummet
The froth continues to vanish for former boom stock, NZ-based Synlait Milk (ASX:SM1), judging by a surprise slashing of guidance issued Monday morning. In doing so, it confirmed why its shares are down 75% in the past year, with the news that it now expects a loss instead of a small profit for the six months to January 31.
Read MoreSynlait reports worse-than-expected annual loss amidst A2 Milk dispute
Kiwi dairy group Synlait (ASX:SM1), currently embroiled in a contentious disagreement with shareholder and customer A2 Milk, has surprised observers by reporting a more significant annual loss for the year ending July 31 than even its pessimistic forecast five months ago had predicted.
Read MoreSynlait Shares Soar on a2’s China Approval News
Synlait shares jumped nearly 15% Tuesday on news that Chinese regulators approved partner a2 Milk’s China label baby formula – a2 was up less than 2%.
Read MoreSynlait Hits Record Low as Outlook Spoils
A bad Wednesday for Kiwi dairy groups Synlait Milk and A2 Milk, with both under pressure from nervy investors and Synlait shares sold off 25% to a record low.
Read MoreSynlait Milking Turnaround for All it Can
The recovery in the fortunes of dairy companies on both sides of the Tasman continues with news from NZ-based Synlait Milk of a strong earnings result for the year to July 31.
Read MoreSM1 – UBS rates the stock as Buy
Buy retained. Target is unchanged at NZ$5.35.
Read MoreNew Synlait Boss with a Big Mess to Clean Up
The annual loss was well telegraphed by Synlait, but not so the news of a new CEO; and that seems to have helped the shares rise yesterday to their highest level since early August.
Read MoreSynlait Forced to Shake Things Up
Is it merely a coincidence that NZ Milk processing company Synlait revealed plans for a big restructure just five days after it was announced the company would be dropped from the ASX 300?
Read MoreFreedom Foods Back from the Brink
Freedom Foods has successfully completed a $265 million recapitalisation that it hopes will ensure the ongoing viability of the business and pay down debt following its near collapse late last year.
Read MoreSM1 – UBS rates the stock as Buy
UBS lowers estimates by -94% for FY21 and -18% for FY22, reflecting a temporary increase in manufacturing unit costs and lower basic ingredient price premiums. Buy rating retained. Target is reduced to NZ$5.55 from NZ$5.75.
Read MoreSynlait Story Seems to Have Curdled
The weak sales impacting a2Milk in China were felt in Synlait’s half year results, as the company continues to wrestle with significant uncertainty and volatility in its business.
Read MoreSM1 – Morgans rates the stock as Downgrade to Reduce
Morgans makes material forecast downgrades, lowers the rating to Reduce from Hold and the target price is decreased to $2.78 from $4.18.
Read MoreSM1 – Morgans rates the stock as Hold
Synlait Milk has received a reduced demand forecast from its only finished infant formula (IFC) customer, The a2 Milk Co ((A2M)). Morgans reduces FY21-23 profit forecasts by -48%, -32% and -21/%, respectively. Target price decreased to $4.18 from $5.87.
Read MoreChina Problems Send Synlait Milk Shares Into Tailspin
Did Synlait, the NZ dairy group (and supplier to A2) join the rising list of casualties from China’s coronavirus crisis (on a day when the death toll and number of cases leapt sharply, making a mockery of the belief that the crisis had stabilised) on Thursday?
Read MoreSM1 – Credit Suisse rates the stock as Upgrade to Neutral from Underperform
Credit Suisse upgrades to Neutral from Underperform and assesses the market is now more realistic about diversification outcomes.
Read MoreSM1 – UBS rates the stock as Neutral
The company has announced a conditional purchase of Dairyworks for NZ$112m. Dairyworks is one of the larger dairy companies in New Zealand and supplies around 50% of cheese and 25% of butter under its consumer brands.
Read MoreDiversity Paramount For Synlait Milk
Investors remain cautious about Synlait Milk, which has many irons in the fire as it works on diversifying its food service strategy. Major customer a2 Milk is also critical to the outlook.
Read MoreSM1 – UBS rates the stock as Neutral
Guidance for FY20 addresses UBS concerns regarding lower initial returns on the Pokeno factory and “Everyday Dairy” plant.
Read MoreSM1 – UBS rates the stock as Initiate coverage with Neutral
UBS initiates coverage with a Neutral rating and NZ$9.70 target, believing the downside is priced into the stock. The broker’s analysis suggests 60% of the company’s profit comes from manufacturing infant milk formula, mainly for a2 Milk ((A2M)) under contract until FY24.
Read MoreSM1 – Morgans rates the stock as Initiation of coverage with Hold
Synlait Milk is nearing completion of the second major capital expenditure phase, during which it will invest NZ$400m in four major growth projects. Morgans believes the new investment will drive strong volume-led earnings growth over FY19-21.
Read MoreMilk Price Outlook Sours Synlait Result
Shareholders in Australia and NZ didn’t take to the annual results from Kiwi milk processor Synlait Milk yesterday.
Read MoreSynlait Milk Energised For Growth
New Zealand’s fourth-largest milk processor, Synlait Milk ((SM1)), has had a strong run up in its shares on the strength of its relationship with a2 Milk ((A2M)). The company is the exclusive supplier of infant formula to a2 Milk for that company’s product base in China and Australasia.
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