NZ Beef’s US Opportunity and the Dairy Beef Initiative
Good medium to long term prospects for NZ beef, especially in the US, has heighted the focus on various initiatives to capitalise on this situation.
Synlait Milk has reported a net loss after tax of $75.4 million for the year to 31 July 2026 (FY26). Its second-half performance improved sharply as manufacturing stabilised.
The company said the first half was hit by the costs of its 2025 manufacturing problems.
It posted a first-half net loss of $80.6 million, then a net profit of $5.2 million in the second half.
FY26 Financial Snapshot
- Revenue: $1.94 billion
- Gross profit: $37.7 million
- Reported EBITDA: $8.1 million (underlying: $46.3 million)
- Net loss after tax: $75.4 million (underlying loss: $21.6 million)
- Net debt: $215.0 million
Synlait said final year-end processes and the finalisation of the milk price left its EBITDA and net profit figures slightly outside the range it gave in an August performance update.
Operations Recover
Manufactured in Spec, a key production quality measure, rose from 91% in the first half to 95% in the second, averaging 99% in August. Plan attainment lifted from 90% to 103%. Reported EBITDA swung from a $34.7 million loss in the first half to a $42.8 million profit in the second.
Chair George Adams said achieving operational stability was critical to the company's future, alongside repairs to its liquidity, balance sheet and milk supply. He noted the company had also completed its North Island assets sale.
Acting CEO Leon Fung struck a cautious note.
"We are not getting ahead of ourselves," he said, adding that the focus was on ensuring the recovery continues and rebuilding with more diversified revenue streams.
Milk Price for Farmers
Synlait confirmed a final base milk price of $9.69 per kg of milk solids (kgMS) for the 2025/26 season. With average incentives of $0.38 per kgMS, the total average payment is $10.07 per kgMS, the second highest in the company's history. The forecast base milk price for 2026/27 is $9.50 per kgMS, excluding incentives.
Balance Date Change
Synlait is moving its balance date from 31 July to 31 December. It is now in a five-month transitional period (TP26) running from 1 August to 31 December 2026. The next full financial year, FY27, will run from 1 January to 31 December 2027.
Because TP26 is short and not comparable with a full year, Synlait will not give quantitative earnings guidance for the period. Its priorities are operational and quality excellence, optimising product and customer mix, and pursuing opportunities in advanced nutritionals, ingredients, foodservice and consumer channels.
What's Next
Synlait's recovery roadmap has three stages: Stabilise, Simplify and Scale. Adams said the company is ready to explore how to maximise returns from its Canterbury assets and expects to share that strategy in 2027.
