Sharechat Logo

Synlait Milk Limited (NZX: SML) announces $200 million equity raising

Tuesday 10th November 2020

Text too small?

Synlait Milk Limited (“Synlait” or the "Company”) (SML.NZX/SM1.ASX) today announced an equity raising (“Equity Raising”) via an approximately $180 million underwritten placement at a fixed price of NZ$5.10 per share (“Placement”) and a $20 million underwritten share purchase plan (“Share Purchase Plan” or “SPP”).

Proceeds from the Equity Raising will support Synlait to:


• Complete the investment phase of its strategy including the customisation of Synlait Pokeno and Auckland for processing and packaging equipment to service its new multinational customer.


• Strengthen its balance sheet to:


• provide more financial headroom as it navigates COVID-19, which is having an unpredictable impact on the stability of its current and future earnings; and


• create capacity to deliver on its purpose: Doing Milk Differently For A Healthier World.


FY21 Guidance Update


• Synlait now expects consumer-packaged infant formula volumes to be lower than FY20, with softer demand in HY21 than previously expected as our key customer resets its own inventory levels.


• Synlait still expects volumes to increase in the second half of FY21 once stocks have cleared, however we are expecting our HY21 NPAT result to be significantly lower than HY20.


• Against this, we now expect to be at or slightly below the FY20 NPAT result for FY21 as Synlait continues to focus on optimising its assets and manufacturing efficiencies.


• This guidance is subject to the unpredictable effects of COVID-19, with consumer behaviour, channel dynamics and supply chain disruptions all subject to change. further update will be provided at Synlait’s half year result in March 2021.


• A further update will be provided at Synlait’s half year result in March 2021.


See the links below for more details:

Source: Synlait Milk Limited

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Good Spirits Hospitality Limited (NZX: GSH) Half Year Results to 31 Dec 2020
NZ Automotive Investments Limited (NZX: NZA) FY21 Earnings Guidance
T&G Global Limited (NZX: TGG) 2020 Full Year Results
Vista Group International Limited (NZX: VGL) Vista Group in the Box Seat for the Future of Movies
Private Land and Property Fund (NZX: PLP) Change in Harvest Estimates
Allied Farmers Limited (NZX: ALF) FY21 Half Year Report
New Zealand Rural Land Company Limited (NZX: NZL) Interim Report to 31 December 2020
Seeka Limited (NZX: SEK) Announces its 31 December 2020 Result
Evolve Education Group Limited (NZX: EVO) Announces Results for Year Ended 31 December 2020
Port of Tauranga Limited (NZX: POT) Reports Improved Profits

IRG See IRG research reports