How Is Synlait Milk Limited (ASX:SM1) Rebuilding Operations?

Sonal Goyal

27 October 2026 05:08 PM AEDT

How Is Synlait Milk Limited (ASX:SM1) Rebuilding Operations?

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

FY26 reported EBITDA was NZD 8.1mn after a NZD 34.7mn loss in 1HFY26 and NZD 42.8mn profit in 2HFY26.
FY26 reported EBITDA was NZD 8.1mn, reflecting negative NZD 34.7mn in 1HFY26 and positive NZD 42.8mn in 2HFY26.
FY26 underlying EBITDA was NZD 46.3mn, comprising NZD 4.1mn in 1HFY26 and NZD 42.2mn in 2HFY26.

During the 27 October 2026 trading session, Synlait Milk Limited (ASX:SM1) traded at AUD 0.42, up 6.33%. The group is engaged in new Zealand dairy and advanced-nutrition manufacturer with milk processing and nutrition production operations. Its October 2026 disclosure and other company announcements reported the financial, operational and corporate developments discussed below.

Reported and Underlying EBITDA

FY26 reported EBITDA was NZD 8.1mn after a NZD 34.7mn loss in 1HFY26 and NZD 42.8mn profit in 2HFY26. Underlying FY26 EBITDA was NZD 46.3mn, including NZD 42.2mn in 2HFY26. Reported FY26 NPAT was a NZD 75.4mn loss, following a NZD 80.6mn loss in 1HFY26. Product manufactured in specification increased from 91% in 1HFY26 to 95% in 2HFY26.

Second-Half Operating Recovery

Production-plan attainment rose from 89.7% in 1HFY26 to 102.6% in 2HFY26. The company completed the sale of North Island assets and refocused operations on Dunsandel. Management outlined a programme covering quality systems, manufacturing planning and product-development priorities. FY26 reported EBITDA was NZD 8.1mn, reflecting negative NZD 34.7mn in 1HFY26 and positive NZD 42.8mn in 2HFY26.

Volumes and Cash Position

FY26 underlying EBITDA was NZD 46.3mn, comprising NZD 4.1mn in 1HFY26 and NZD 42.2mn in 2HFY26. Reported FY26 net loss after tax was NZD 75.4mn, including a NZD 80.6mn loss in 1HFY26 and NZD 5.2mn profit in 2HFY26. Foodservice volumes increased 43% in FY26, as disclosed in the results presentation.

Business Overview

Synlait Milk Limited (ASX:SM1) conducts new Zealand dairy and advanced-nutrition manufacturer with milk processing and nutrition production operations. Its activities and assets underpin the revenue, cost, output and other performance measures presented in the company disclosures. The reported results and guidance cover the dates identified in each release, separate from the 27 October share-market quotation.

Risks and Catalysts on Watch

Synlait’s material operating variables include dairy processing volumes, product mix, customer contracts and costs. The difference between reported and underlying EBITDA remained significant in FY26.

Developments to Follow

Reported FY26 net loss after tax was NZD 75.4mn, including a NZD 80.6mn loss in 1HFY26 and NZD 5.2mn profit in 2HFY26. Foodservice volumes increased 43% in FY26, as disclosed in the results presentation.

FAQs

Q: How did the shares trade on 27 October 2026?

A: Synlait Milk Limited (ASX:SM1) was indicated at AUD 0.42, up 6.33%.

Q: What was a key result reported by the company?

A: FY26 reported EBITDA was NZD 8.1mn after a NZD 34.7mn loss in 1HFY26 and NZD 42.8mn profit in 2HFY26.

Q: Which reporting period is covered?

A: The financial figures above are drawn from the company announcements identified by their dates, including October 2026.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.