Synlait Publishes HY25 Result

Monday 24th March 2025

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Synlait Milk Limited (Synlait) has announced its financial results for the six months ended 31 January 2025.

Please find the following materials attached:

1. Synlait Half Year 2025 Market Announcement

2. Synlait Half Year 2025 Chair & Acting CEO Review

3. Synlait Half Year 2025 Financial Statements

4. Synlait Half Year 2025 Investor Presentation

5. Synlait Half Year 2025 Shareholder Letter

6. NZX Results Template

Key financial metrics

• EBITDA was $63.1 million, up 217%.

• NPAT was $4.8 million, up 105%.

• Net debt was $391.9 million, down 29%.

• Revenue was $916.8 million, up 16%.

• Gross profit was $87.0 million, up 99%.

• Forecast base milk price for the 2024/2025 season is $10.00 per kg/MS with additional premium payments available to suppliers without a cease notice, taking the total forecast average milk payment for Synlait suppliers to $10.48 per kg/MS.

Full year 2025 (FY25) guidance statement

The company’s key priorities for the second half of this financial year are straightforward:

1. Showcasing Synlait’s on-farm offering

2. Delivering for existing and new customers

3. Further uplifting operational and cost efficiency

A continued focus on doing the fundamentals well will enable Synlait to deliver a significant improvement in the company’s overall EBITDA performance compared to the prior year. However, financial progress made in the second half of FY25 will be slower than the first half as Synlait balances several opportunities and risks related to milk stream returns and foreign exchange and delivers ongoing operational and cost improvements.

Synlait is targeting a closing net debt balance of $250 million to $300 million and a net senior debt to EBITDA ratio of below 2.5x in FY25, positioning the company well for its bank refinancing process in the second half.

South Island Milk Supply Update

As noted above, showcasing Synlait’s on-farm offering and continuing to strengthen the company’s milk supply is a key priority.

Synlait is very comfortable with its forecast milk supply for the next financial year (FY26). Synlait advises that the majority of its South Island farmer suppliers are not under cease – this is a significant improvement in the company’s position from six months ago.

The reversal of ceases continues to gain momentum. Given the company’s return to profitability, as released in today’s results, it is expected the number of withdrawals will increase further ahead of 31 March 2025, which is the final date for farmers to remove their cease if they wish to access all the new, secured milk premiums. Only a minimal number of farmers have confirmed they are exercising their option to leave Synlait for an alternative processor.

In addition, interest from potential new farmer suppliers has exceeded expectations and Synlait expects to recruit new farmer suppliers in the coming seasons based on the strength of its on-farm offering.

Conference call details

Acting CEO Tim Carter and CFO Andy Liu will host a webcast briefing on the result at 11.00am (New Zealand time).

Participants can register for the webcast here: https://s1.c-conf.com/diamondpass/10045074-jh8u7y.html

A transcript and recording of the webcast will be available on Synlait's website shortly afterwards.

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