Synlait passes $1 billion mark

The turnover of the New Zealand dairy company Synlait has passed the $1 billion level for the first time, according to recently published annual figures for the fiscal year that ended on July 31. Sales volumes and net profit also showed a strong increase.

Synlait has seen revenue grow 17% in the past fiscal year to just over $1 billion (approximately $578 million). Net profit increased 10% to $82,2 million (approximately €47,5 million) and sales volumes increased 16% to 149.730 million tons. Also makes the dairyer the average milk price for the 2018/2019 season is known in the annual figures. This amounted to $6,58 per kilo of milk solids (€3,79 per 11,5 liters of milk).

Investments
The New Zealand dairy processor reports that the growth is partly due to completed investment projects. In the past financial year, for example, it opened a new baby food factory, the acquisition of Talbot Forest Cheese was completed in August and created a total of 218 new jobs.

The company is also announcing a new investment: Dry Store 4. The $32 million available for this project will build a 30.000 m² warehouse at Synlait Dunsandel. This warehouse will create 20 jobs and is said to be completed by September 2020. Warehouse space at Dunsandel will increase to 55.000 m² upon completion of construction.

Postponement at Fonterra
Fonterra, New Zealand's largest dairy, made 2 weeks ago known to postpone the publication of the annual figures. According to the dairy, more time is needed to complete the report. While Synlait Milk reports excellent figures for the past financial year, Fonterra is expected to sample loss must present. The loss is expected to be in the range of $590 million to $675 million, representing a loss of $0,37 to $0,42 per share.

* This article is about New Zealand dollars.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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