Dollar blamed as Synlait Milk cuts profit forecast

Last updated 10:15 30/05/2014

Relevant offers


Farmwatch releases more video of abused NZ calves Taranaki road transport boss says bobby calf video is positive West Coast farmer to exit as chairman of milk co-op Prosecutions possible after bobby calf footage shows potential abuse Q & A: What happens when Fonterra sneezes Government moves to make dairy industry more competitive MPI ready to handle foot-and-mouth disease outbreak MyFarm investment company expands into vineyards Vet warns farmers against cheap dairy grazing Manawatu-Rangitikei milk production down

Listed dairy business Synlait Milk has cut to its full-year profit forecast again, with the New Zealand dollar one of the culprits.

Its new forecast net profit range of $17.5 million to $22.5m is the second revision this year, but is in line with its prospectus forecast of $19.8m.

In January it estimated profit after tax would be between $30m-$35m, but in March reduced that to $25m-$30m

The earlier downgrade pointed to regulatory changes in China and Fonterra's recall of whey protein, which had reduced the volumes of infant formula and nutritional products being sold.

This time it has blamed a "reduced advantage from a favourable product mix" in the second half of the year, and the consistently high New Zealand dollar.

Synlait could also reduce its milk price as a result of international commodity price volatility, coupled with the high kiwi.

Its forecast milk price for the season has expanded from a range of $8.30-$8.40 per kilogram of milk solids to $8.20-$8.40/kg.

The new-season forecast milk price for the 2015 season is $7/kg.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content