Synlait Milk nearly doubles profit with infant formula success

Rural Exchange 22/09/2018

Canterbury milk processor Synlait has nearly doubled its profit after a strong increase in infant formula sales.

Synlait reported a net profit of $74.6 million in the 12 months ending in July - an 89 percent increase to last year's $39.5 million profit.

The announcement comes shortly after dairy co-operative Fonterra saw a near $200 million loss for 2017.

Synlait CEO Leon Clement, who recently replaced John Penno, said an increase in infant formula sales was the driving force behind the increased profit.

"Secondary to that was some really good gains that our operations team made in efficiency," Mr Clement added.

In November 2017, Synlait expanded their Dunsandel processing site and commissioned a blending facility in Auckland.

Mr Clement said a focus on geographic and category diversification throughout the next fiscal year will hopefully continue this growth.

"Part of what we're trying to achieve is to diversify our organisation and we're doing that at multiple levels."

Listen to the full interview with Leon Clement above.

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