Synlait’s financial turnaround halts supplier exodus
A marked turnaround in the financial performance of Canterbury milk company Synlait has halted a threatening exodus of farmer suppliers.
The majority Chinese-owned dairy company - once the darling of financial markets - now has analysts saying it will take several years to recover after posting its recent financial loss.
John Penno was parachuted in as chief executive again, but his so-called Midas touch appears to have disappeared, with the company now selling assets and culling staff.
This old mutt's sources say while Penno appears to be good at selling the sizzle, there was never much sausage behind this and that is now coming home to roost.
They are also questioning the time Penno spent last year spruiking the Government's hugely unpopular new freshwater regulations when things at Synlait were turning pear-shaped.
