Dollar blamed as Synlait Milk cuts profit forecast
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.