Half Year 2024 Synlait Milk Ltd Earnings Call Transcript
Key Points
- Synlait Milk Ltd (ASX:SM1) reported an adjusted EBITDA of $36.1 million, showing some operational profitability.
- The company has a clear deleveraging plan supported by its banks and largest shareholder, Bright Dairy.
- Synlait Milk Ltd (ASX:SM1) announced an increase in its base milk price forecast from $7.50 to $7.80.
- The company has several new products in development and trials with new customers at scale.
- Synlait Milk Ltd (ASX:SM1) has strengthened its leadership and governance with a refreshed executive team and the appointment of George Adams as an Independent Director.
- Synlait Milk Ltd (ASX:SM1) reported a significant adjusted net loss after tax of $17.4 million and a total net loss after tax of $96.2 million.
- The company has a high net debt of $559 million, which is a major concern.
- Interest rates have roughly doubled, adding financial pressure on the company.
- The company faces material uncertainties over the next 3 to 12 months, including the need to deleverage and manage excess capacity.
- Operating cash flow was negative $98.1 million, although this was an improvement on the prior period.
Good morning, everyone, and welcome to Synlait Milk Limited half-year results conference call. I'm Hannah Lynch, the Head of Strategy & Corporate Affairs here at Synlait. I'll shortly hand over to our CEO, Grant Watson and our CFO, Robert Stowell, he'll provide you with an overview of today's presentation for our results. We'll then open the phone lines for question and answers. (Event Instructions) Over to you, Grant.
Morena tÄtou and good morning to you all. Thank you for joining us on Synlait half year 2024 results call. It's been a challenging half year, but certainly as we continue to reset the company to achieve our strategic strategic objectives are working to finalize a clear plan to materially reduce our debt. After significant levels of investment over a number of years Synlait has too much capacity and too much debt.
Interest rates have roughly doubled in recent years and birthrates have roughly have now
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