Synlait is in the midst of changing its balance date to December 31 to align with its majority shareholder, Bright Dairy.
Chairman George Adams said the result reflected a difficult first half, followed by a second half in which a return to operational stability flowed through to an improved financial performance.
He said it had been another challenging year for Synlait.
“Our first-half performance was affected by the impacts and costs of the 2025 manufacturing challenges,” he said.
Acting chief executive Leon Fung said the half showed Synlait was making progress.
“We have plans to navigate the challenges ahead and rebuild Synlait, with diversified revenue streams, so the company is more resilient and better positioned for the future,” he said.
“We are on the right track.
“We are doing the right thing but don’t want to overpromise.”
Synlait released a “stabilise, simplify and scale” roadmap to recovery in March.
Material released with its results showed Synlait’s performance was strongest when it was a South Island-focused business based in Dunsandel – the company’s net profit came to $82.2m in 2019.
Fung told the Herald he was encouraged by the half-year turnaround but said it was a “huge” loss for the year.
“The reason I’m taking the cautious approach now is that it does take a little bit of time to be firm on the operation’s stability and operational excellence that we are aiming for.
“We can concentrate on Dunsandel, where Synlait’s roots are, and we are confident that we are doing the right thing,” Fung said.
A2 Milk, Synlait’s main customer for infant formula, became a manufacturer in its own right when it bought Yashili’s facility at Pōkeno last year.
However, Synlait remains a2 Milk’s only supplier of Chinese-labelled product destined for the PRC – by far a2’s biggest market.
Synlait has a highly sought registration to supply China.
Registration lasts for five years, and the company is in the process of re-registering.
Fung said Synlait and a2 had been working together for many years, and that Synlait had contributed to a2’s Milk’s success.
“We see the relationship lasting a long time.”
Fung said Synlait was now a much simpler business.
In advanced nutrition, Synlait said, it secured a new Middle East customer for the commercial supply of base powders in 2027.
Fung has been acting chief executive for four months now after replacing then CEO Richard Wyeth.
Synlait has gone into a selection process for a new CEO and Fung is a candidate.
The company paid its farmers $9.69 per kg of milksolids (kgMS) in 2026, the same as Fonterra.
Together with a 38c milk price incentive scheme, the payout came to $10.07/kg,
Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.
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