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New Zealand Synlait in red, where Fonterra blooms
New Zealand's Synlait paid almost as much milk money as Fonterra in the past financial year 2022/23, but its business performance was much less successful. The company therefore wants to reorganize and divest factories.
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CEO Grant Wilson announced this during the presentation of the annual figures. According to him, the private company, which is 51% owned by the Chinese Bright Dairy, suffered from a multitude of setbacks. Sales to China were under pressure, there were still consequences of Covid-19 and business was not going so well.
Turnover amounted to €897 million. That was not that bad compared to the year before, because it was 3% less. However, the profit of several tens of millions turned into a loss of -€2,4 million. Two recently purchased factories (Dairy Works and Temuka) were also performing poorly and are again slated for sale.
Collaboration with A2 Milk Company
Finally, the company ended up in a conflict with the A2 Milk Company. We have been working with them since 2012, especially for the production of infant nutrition. However, the A2 Milk Company wants to change things and thus put an end to the exclusive production of its product by Synlait. The latter believes that this is not simply possible and is now going to court to clarify this. According to Synlait, the dispute will in any case have no consequences for the results in the current financial year.