Synlait Milk Limited (ASX:SM1)

Synlait Milk Limited’s FY26 shareholder letter says the year was ultimately defined by operational recovery rather than stronger earnings, despite the April 2026 sale of North Island assets strengthening the balance sheet and removing a drag on performance. The company reported EBITDA of $8.1 million, underlying EBITDA of $46.3 million, a reported net loss after tax of $75.4 million, an underlying net loss after tax of $21.6 million, net debt of $215.0 million, revenue of $1.94 billion and gross profit of $37.7 million. Management highlighted a clear second-half improvement, with product manufactured in specification rising from 91% in the first half to 95% in the second, full-year MIS averaging 93% versus 88% in FY25, manufacturing plan attainment increasing from 90% to 103%, and reported NPAT improving from an $80.6 million first-half loss to a $5.2 million second-half profit, helped by a $26.0 million gain on the North Island asset sale. The letter says Synlait has addressed operational issues by investing in people and plant and resetting revenue, operations and quality functions, while now focusing on diversifying income by customer, product and market. Looking ahead, Synlait said it has progressed the stabilise and simplify phases of its recovery roadmap and will begin exploring how to scale returns from its Canterbury assets, with more strategy detail expected in 2027; it also confirmed a financial year change from a 31 July balance date to 31 December, with a five-month transitional period from 1 August to 31 December 2026 (TP26) and FY27 running from 1 January to 31 December 2027, and no earnings guidance provided for TP26.