New Zealand dairy company Synlait says a stronger second half has given its leaders hope that its fortunes are turning, after another difficult year, Farmers Weekly NZ reports.

For the 12 months to 31 July it reported a net loss after tax of $75.4 million, or an underlying loss of $21.6 million, on revenue of $1.94 billion. Reported EBITDA was $8.1 million and underlying EBITDA $46.3 million. Net debt fell to $215 million from $551 million in 2024, largely because of the sale of its North Island assets.

Chair George Adams said the first half was hit by the costs of the 2025 manufacturing problems, and that operational stability drove the improvement that followed. Product manufactured to specification rose from 91 percent to 95 percent in the second half, averaging 99 percent in August, and plan attainment rose from 90 percent to 103 percent. Reported EBITDA swung from a $34.7 million loss in the first half to $42.8 million in the second, and the company moved from an $80.6 million first-half loss to a $5.2 million second-half profit.

"We are not getting ahead of ourselves," acting chief executive Leon Fung said, adding that Synlait planned to rebuild with more diversified revenue. Adams said the recovery roadmap released in March 2026 focused on stabilising, simplifying and scaling, and that a strategy to maximise returns from its Canterbury assets would be shared in 2027.

For farmers, Synlait confirmed a final base milk price of $9.69/kg MS for 2025-26, with average incentives of $0.38/kg MS, for a total average payment of $10.07/kg MS. Its forecast base price for 2026-27 is $9.50/kg MS before incentives. The company is also moving its balance date from 31 July to 31 December, with a five-month transitional period to the end of this year.

Photo: Schwede66 / Wikimedia Commons (CC BY-SA 4.0)

Source: Farmers Weekly NZ