M.I.A.
OPINION: The previous government spent too much during the Covid-19 pandemic, despite warnings from officials, according to a briefing released by the Treasury.
Despite a decline in half-year profit, Synlait is assuring shareholders it will regain shareholder value.
Read: Synlait Milk concerned with Covid-19.
For the six months ended January 2020, Synlait’s net profit after tax fell 30% to $26.2 million, compared to $37.3 million in its 2019 half-year report.
The independent milk processor says the decline is a result of higher depreciation and interest costs as a result of increased investments.
Total half-year revenue increased by 19% to $559 million and total milk processed grew by 8.5%.
Synalit says its core earnings growth remains sound, however the time and costs of creating new growth opportunities has impacted profitability short-term.
“This is not a reflection of core business non-performance, but a moderation of our own expectations against the investments we are making for our future,” the company wrote to its Shareholders.
“Yes, adjusted assumptions around our infant formula base sales, consumer-packaged infant formula volumes, and lactoferrin pricing mean we will not be able to absorb the costs of standing up our new investments this year – but long-term confidence in our business remains unchanged.”
Last month, Synlait updated it forecast net profit after tax for the full year 2020 to be between $70 million to $85 million.
“We recognise this was not expected, but it forms part of Synlait’s acceptable risk story, which we have been upfront about as we work to diversify and grow.
“Yes, we hoped to increase asset utilisation and earnings at a faster rate, but we remain confident that decisions made will regain shareholder value over the medium to long-term. Delivering on this is front of mind for the board and executive team.”
According to ASB, Fonterra's plan to sell it's Anchor and Mainlands brands could inject $4.5 billion in additional spending into the economy.
New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.
The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.
Dignitaries from all walks of life – the governor general, politicians past and present, Maoridom- including the Maori Queen, church leaders, the primary sector and family and friends packed Our Lady of Kapiti’s Catholic church in Paraparaumu on Thursday October 23 to pay tribute to former prime Minister, Jim Bolger who died last week.
Agriculture and Forestry Minister, Todd McClay is encouraging farmers, growers, and foresters not to take unnecessary risks, asking that they heed weather warnings today.
With nearly two million underutilised dairy calves born annually and the beef price outlook strong, New Zealand’s opportunity to build a scalable dairy-beef system is now.
OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.
OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.