Canterbury-based milk processor Synlait Milk is anticipating a loss after tax of $27million to $40m after manufacturing challenges at its Dunsandel factory.
The company announced to NZX the predicted result for the financial year ending July compared with a $182.1m loss the previous year.
Synlait had to deal with manufacturing issues at its Dunsandel facility across a range of products, resulting in one-off costs.
The company said the challenges had been resolved. The site is now in new-season production after winter maintenance.
Earnings of $50m to $68m before interest, taxes, depreciation and amortisation (ebitda) are up on the previous $4.1m loss.
A closing net debt balance of $300m was expected.
Synlait expected its underlying net profit would break even for the full year.
The company was expecting underlying ebitda of $100m to $110m compared with $45.2m previously.
Synlait has yet to close its books for the financial year, and the preliminary update remained subject to the year-end wrap up, including an audit. It continues to comply with its banking covenants.
Chief executive Richard Wyeth said in a statement that Synlait had strong foundations and its assets were well-located, with the capacity and capability to manufacture complex products in high demand around the world.
“The company’s recovery had been tracking in line with expectations and while turnaround will take time, I am confident of success,” he said
He joined Synlait 10 weeks ago.
