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Synlait Milk Limited (ASX:SM1)

ALERT: Price-sensitive ASX Announcement for SM1
Current share price for SM1 : $0.300 -0.22 (-42.31%)+
Announcement
Release
4 Feb 2026 7:30AM
Price at Release
$0.520
Full Release
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Summary
Synlait Milk Limited provided a half-year performance update for the six months ending 31 January 2026, highlighting significant financial challenges and operational impacts. The company is undergoing a strategic reset with the sale of its North Island assets, expected to strengthen its financial position through substantial debt reduction. Despite resolving manufacturing challenges at Dunsandel, costs and operational impacts persist, necessitating inventory rebuilding and additional raw milk sales, which negatively affected margins. The company forecasts an underlying EBITDA ranging from breakeven to $5 million, with a reported EBITDA loss between $28 million and $33 million. Additionally, Synlait projects an underlying net loss after tax of $33 million to $38 million, and a reported net loss after tax between $77 million and $82 million. An insurance claim is anticipated to recover some incurred losses, though details are pending. The update remains subject to audit review, and more information will be available on 23 March 2026.
Key Points
  • Synlait Milk Limited provides a half-year performance update for HY26.
  • The company expects an underlying EBITDA ranging from breakeven to $5 million.
  • Reported EBITDA loss is expected to be between $28 million and $33 million.
  • Underlying net loss after tax is predicted to be $33 million to $38 million.
  • Reported net loss after tax is expected to be between $77 million and $82 million.
  • Sale of North Island assets to strengthen financial position and reduce debt.
  • Manufacturing challenges at Dunsandel mostly resolved, yet cost impacts persist.
  • Insurance claim accepted for losses due to manufacturing issues, awaiting settlement.
  • Further updates to be provided when half-year results are released on 23 March 2026.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.