New Synlait CEO Leon Fung Commits to Christchurch Move
Canterbury milk processor Synlait has come through tough times and is now ready to scale up from a stable base, says its newly confirmed CEO Leon Fung.
Yesterday's Synlait Milk annual meeting delivered good news for members, with the company showing solid performance for the 2013 financial year.
"We're pleased that we delivered on the promises we made last year by meeting our prospective financial information forecasts. Our $19.6 million net profit after tax was in line with our PFI forecast of $19.7 million, and that's a good result for our shareholders," says managing director Dr John Penno.
The increase in revenue of 43% to $600 million for 2013 is welcome news to shareholders, as it goes beyond the forecast of $524 million for the year.
"We also completed three of six major capital growth projects throughout the year, which will provide the plant and infrastructure our business needs to achieve our goal of delivering the most valued milk solutions in the world," adds Penno.
However, chairman Graeme Milne also outlined some of the challenges Synlait face.
"It was a good year for dairy farmers as commodity prices were relatively high, but their volatility throughout the year made it difficult to consistently achieve profit margins," says Milne.
"Changes to infant formula market regulations in China added further complexity, however we are now in a strong position to take advantage of increased sales in this market."
Overall, shareholders were pleased with Synlait's performance and continued progress in 2014, and support the company's focus for the 2015 financial year.
"It's still early in the season, but we expect the benefit of increased infant formula and nutritional sales to be largely balanced out by increased operating and funding costs," says Milne.
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