Synlait Loses Third CEO in Five Years as Richard Wyeth Resigns
Troubled milk processor Synlait has lost its third chief executive in five years.
In an announcement to the NZX this morning, Synlait said it would lift its forecast to $8.60/kgMS, up from $8/kgMS.
Despite this increase, the milk processor says it will continue to take a ‘conservative’ approach to its 2024/25 forecast due to exposure to what it describes as volatile future dairy commodity prices earlier in the season.
“Retention of Synlait’s milk supply remains a critical priority for the company,” the statement says. “Synlait is committed to delivering a competitive milk price and advanced rate profile, which has also been lifted for 2024/2025 to ensure the company’s on-farm offering remains attractive to farmer suppliers.”
Synlait says it will continue to monitor future forecast movements and its final milk price for the 2023/24 season will be confirmed when the company’s full-year results are revealed at the end of this month.
The announcement comes just two weeks after Fonterra announced its new forecast range of $7.75 - $9.25/kgMS, meaning a midpoint of $8.50/kgMS.
It also comes as Synlait attempts to pass a recapitalisation plan which would see $218 million in shares offered to its two largest shareholders, Bright Dairy of China and the a2 Milk Company (a2MC).
Currently, Bright Dairy owns 39% of Synlait but under the deal that would increase to approximately two thirds of the listed company. Meanwhile, a2MC would retain its 19.83% stake.
A special shareholder meeting has been scheduled for September 18 to confirm the recapitalisation.
