Dollar blamed as Synlait Milk cuts profit forecast

NIKO KLOETEN
Last updated 10:15 30/05/2014

Relevant offers

Dairy

Contract milking couple's farm ownership goal Less-gassy cows could soon be on farms Agreed liveweight targets key to well-grown heifers Debt a big hurdle to breaking even Robotic milkers not answer to 'fatigue' Dairy bounce-back tipped after GDT auction Yashili factory promises 'dramatic' flow-on effect A big herd: Dairy cattle numbers on rise Rent hikes hit rural Waikato Back to basics key to survival

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