Synlait Milk Ltd. · NZX:SML
Synlait Milk — HY25 Earnings Presentation
24 slides from Synlait Milk's earnings presentation, Mar 24, 2025
Slide 1: Half Year Results Investor Presentation
HALF YEAR RESULTS INVESTOR PRESENTATION For the six months ended 31 January 2025
Slide 2: Progress to Date: Encouraging
PROGRESS TO DATE: ENCOURAGING A summary of first half performance. Return to profitability delivered. FOCUSING ON THE REBUILDING FARMER SEIZING PRIORITIES FUNDAMENTALS TRUST AND CONFIDENCE OPPORTUNITIES Uplifting operational outcomes Securing future milk supply Continuously delivering for through a
Slide 3: Results at a Glance
RESULTS AT A GLANCE 29% 88% $ 391.9 M ( $ 12.0 M ) NET DEBT OPERATING CASHFLOW $43.2M $101.0M 16% $43.4M $ 63.1 M $ 4.8 M $ 916.8 M $ 87.0 M TOTAL GROUP TOTAL GROUP TOTAL GROUP EBITDA TOTAL GROUP NPAT REVENUE GROSS PROFIT FY25 FORECAST MILK PRICE 28% 30% $ 10.00 + $ 0.28 + $ 0.20 = $ 10.48 FORECAST
Slide 4: Synlait's HY25 Result
SYNLAIT'S HY25 RESULT Adjusted NPAT movement ($ millions) 2.2 0.6 12.9 2.6 NPAT and EBITDA recovered significantly in the half, led by higher demand for Advanced Nutrition (1.4) products and improved Ingredients stream returns, both of which benefitted from improvements in FX (5.9) 8.7 26.1 and manu
Slide 5: Financial Performance
FINANCIAL PERFORMANCE Andy Liu Chief Financial Officer PAGE 5
Slide 6: Advanced Nutrition Performance
Volumes (MT) ADVANCED NUTRITION PERFORMANCE The Advanced Nutrition business saw a significant performance uplift, with gross profit up $26.1m (80%), driven by higher demand and improved manufacturing cost performance. SALES PERFORMANCE MANUFACTURING PERFORMANCE Sales Production Closing Stock Total r
Slide 7: Ingredients Performance
Volumes (MT) INGREDIENTS PERFORMANCE The Ingredients business saw a significant uplift in performance, driven by higher stream returns, improved FX, and the strategic exit of raw milk processing at Pōkeno. SALES PERFORMANCE MANUFACTURING PERFORMANCE Sales Production Closing Stock Total revenue incre
Slide 8: Consumer Foods Performance
Volumes (MT) CONSUMER FOODS PERFORMANCE While sales decreased slightly, gross profit increased $2.2m driven by cost control alongside improved manufacturing efficiency following recent automation improvements. SALES PERFORMANCE MANUFACTURING PERFORMANCE Sales Production Closing Stock Sales revenue d
Slide 9: Foodservice Performance
Volumes (MT) FOODSERVICE PERFORMANCE While sales volumes increased 115%, margin performance remained below expectations due to unfavourable fat pricing. The pace of growth is increasing as Synlait establishes its reputation as a premium UHT cream manufacturer, with a focus on ensuring this business
Slide 10: Cash Flow and Net Debt
CASH FLOW AND NET DEBT Net debt¹ movement ($ millions) 26.9 550.7 1.7 12.0 12.7 Net debt¹ ended at $391.9m, $158.8m lower than FY24 due to October's equity placement. Improved trading performance and lower levels of capital spend limited adverse movements in net debt. 391.9 (212.1) OPERATING CASH FL
Slide 11: Business Update
BUSINESS UPDATE Tim Carter Acting CEO PAGE 11
Slide 12: Advanced Nutrition
ADVANCED NUTRITION New business opportunities progressed driving sales, particularly in base powders. BUSINESS DEVELOPMENT ONGOING FY25 FOCUS • Strong customer interest in Synlait's new Nutrabase™ • Continued expansion of Nutrabase™. range, with first commercial sales confirmed for the • Execution o
Slide 13: Foodservice
FOODSERVICE Strong UHT cream volume growth as distribution network and market reach expands. BUSINESS DEVELOPMENT • Strong volume growth in Southeast Asia due to the expanded distribution network. • Entered Hong Kong market through partnership with Uhrenholt. • High profile exposure at the China Int
Slide 14: Ingredients
INGREDIENTS Increased sales performance achieved through careful management of favourable market conditions. BUSINESS DEVELOPMENT • Despite a reduction in overall volumes following the strategic exit of raw milk processing from Synlait’s North Island operations, the Ingredients business has seen str
Slide 15: Dairyworks (Consumer)
DAIRYWORKS (CONSUMER) Strong growth continues in this standalone business, driven by initiatives across multiple markets which leverage various consumer trends and spending habits. BUSINESS DEVELOPMENT MARKET DEVELOPMENT – AUSTRALIA • New Zealand manufacturing market share has • Woolworths Australia
Slide 16: Milk Supply, On-Farm Excellence and Sustainability
MILK SUPPLY, ON-FARM EXCELLENCE AND SUSTAINABILITY Synlait earns 6% of New Zealand’s dairy export earnings through careful management of approximately 4% of the country’s milk supply. MILK SUPPLY UPDATE ADDING VALUE ON-FARM • Continuing to strengthen Synlait’s milk supply remains • There have been m
Slide 17: Maintaining Momentum
MAINTAINING MOMENTUM SHOWCASING SYNLAIT'S DELIVERING FOR FURTHER UPLIFTING KEY PRIORITIES ON-FARM OFFERING EXISTING AND NEW OPERATIONAL AND CUSTOMERS COST EFFICIENCY Ensuring Synlait is the processor Seize every opportunity to Continued focus on the core of choice. create value for an expanding fund
Slide 18: Full Year 2025 Guidance
FULL YEAR 2025 GUIDANCE Continuing to progress. The company’s key priorities for the second half of this financial year are straightforward: 1. Showcasing Synlait’s on-farm offering SOUTH ISLAND MILK SUPPLY UPDATE 2. Delivering for existing and new customers Showcasing Synlait’s on-farm offering and
Slide 19: Appendix
APPENDIX PAGE 19
Slide 20: Key Financial Metrics
KEY FINANCIAL METRICS Gross profit per MT ($)* Return on net operating assets (12 month trailing) Debt/debt + equity 983.3 8.7% 47.5% 44.5% 830.7 6.1% 594.6 38.7% 39.3% 557.9 2.8% 709.0 404.5 4.0% 37.9% 539.3 H1 21 H2 21 H1 22 H2 22 H1 23 H2 23 H1 24 H2 24 H1 25 34.3% 0.4% 33.3% 32.2% (1.6%) 30.0% (
Slide 21: Debt Facilities and Banking Covenants
DEBT FACILITIES AND BANKING COVENANTS BANK FACILITIES COVENANTS The banking syndicate includes ANZ, Bank of China, Bank of Communications, China Construction Synlait has key financial covenants in place with its banking syndicate. These are: Bank, HSBC, Industrial and Commercial Bank of China, Kiwib
Slide 22: Gross Profit Performance by Business Unit
GROSS PROFIT PERFORMANCE BY BUSINESS UNIT HY21 HY22 HY23 HY24 HY25 Sales Volume (MT) Advanced Nutrition 19,679 13,774 17,415 15,874 20,363 Ingredients 56,971 72,028 37,234 59,661 51,945 Consumer 30,270 30,400 28,238 30,543 28,640 Foodservice - - 218 1,744 3,751 Subtotal 106,920 116,202 83,105 107,82
Slide 23: Disclaimer
DISCLAIMER This presentation is intended to constitute a summary of certain known and unknown risks, uncertainties, assumptions and other information in this presentation is given for illustration purposes information about the Synlait Group (“Synlait”) or in connection important factors, many of wh
Slide 24: For More Information Contact
FOR MORE INFORMATION CONTACT: Hannah Lynch Head of Milk Supply, Strategy & Corporate Affairs +64 21 252 8990 hannah.lynch@synlait.com