Synlait’s Underlying EBITDA Set to More Than Double in FY25
Synlait Milk Limited reports a significant financial turnaround for FY25 with expected underlying EBITDA doubling from the prior year, while overcoming manufacturing setbacks at its Dunsandel facility.
- Underlying EBITDA forecasted between $100 million and $110 million, up from $45.2 million in FY24
- Breakeven underlying net profit after tax expected, improving from a $60.4 million loss in FY24
- Manufacturing challenges at Dunsandel facility caused one-off costs but have been resolved
- Reported net loss narrowed to $27-$40 million from $182.1 million in FY24
- Targeting a closing net debt of $300 million and remains compliant with banking covenants
A Marked Financial Recovery
Synlait Milk Limited has provided a preliminary update on its financial performance for the year ended 31 July 2025, revealing a substantial improvement over the previous year. The company expects underlying EBITDA to reach between $100 million and $110 million, more than doubling the $45.2 million recorded in FY24. This signals a strong operational recovery and a significant step towards profitability, with underlying net profit after tax anticipated to break even compared to a loss of $60.4 million last year.
Operational Challenges and Resolutions
Despite this positive trajectory, Synlait faced manufacturing difficulties at its Dunsandel facility, impacting multiple product segments and resulting in one-off costs during FY25. These challenges, however, have been resolved, and the facility has completed its routine winter maintenance, now transitioning into new season production. The company’s ability to address these issues swiftly will be critical in maintaining momentum and meeting market demand for its complex dairy products.
Improved Reported Results and Debt Management
On a reported basis, Synlait forecasts a net loss after tax ranging from $27 million to $40 million, a dramatic improvement from the $182.1 million loss in FY24. Reported EBITDA is expected to be between $50 million and $68 million, turning around from a negative $4.1 million the previous year. The company is also targeting a closing net debt balance of $300 million, underscoring a focus on strengthening its balance sheet and financial stability.
Leadership Confidence and Future Outlook
New CEO Richard Wyeth, who joined Synlait just 10 weeks ago, expressed confidence in the company’s recovery path, praising the commitment of the team and the strategic value of Synlait’s assets. He highlighted the company’s capacity to manufacture high-demand, complex dairy products globally as a key strength. While acknowledging that the turnaround will take time, Wyeth’s remarks suggest a steady hand at the helm during this critical phase.
Looking Ahead
Synlait’s final audited results for FY25 will be announced on 29 September 2025. Investors and analysts will be watching closely to see if the company can sustain its operational improvements and deliver on its financial guidance. The resolution of manufacturing issues and effective debt management will be pivotal in shaping Synlait’s next chapter.
Bottom Line?
Synlait’s FY25 update marks a promising turnaround, but the path to sustained profitability hinges on operational consistency and debt control.
Questions in the middle?
- Will Synlait’s Dunsandel facility maintain stable production without further disruptions?
- How will the company manage its $300 million net debt amid market uncertainties?
- What strategic initiatives will CEO Richard Wyeth prioritize to accelerate the turnaround?
