Highlights

• Synlait reported FY26 Revenue of NZD 1.94 billion and underlying EBITDA of NZD 46.3 million.

• Second-half reported EBITDA reached NZD 42.8 million after a first-half reported EBITDA loss of NZD 34.7 million.

• Manufacturing-in-spec performance improved from 91% in the first half to 95% during the second half.

• Synlait appointed Leon Fung as permanent chief executive on 21 October 2026 after his period as acting CEO.

A second-half improvement in factory performance is shaping the recovery narrative at Synlait Milk Limited (ASX:SM1). Shares were unchanged at AUD 0.40 on 5 November 2026, while the dairy manufacturer continued working through its Stabilise, Simplify and Scale roadmap. The company’s FY26 results show operational progress alongside a full-year loss, and its October Leadership appointment provides an additional milestone in that programme.

A Better Second Half Changes the Operating Picture

Synlait reported NZD 1.94 billion in revenue for FY26, the year ended 31 July 2026. Reported EBITDA was NZD 8.1 million and underlying EBITDA reached NZD 46.3 million. The company recorded a reported net loss after tax of NZD 75.4 million and an underlying net loss of NZD 21.6 million. Those annual figures reflect a difficult first half followed by improved operations.

The second-half shift was evident in operating measures. Manufacturing-in-spec increased from 91% in the first half to 95% in the second, while plan attainment improved from 90% to 103%. Reported EBITDA moved from a NZD 34.7 million loss in the first half to positive NZD 42.8 million in the second. Synlait reported second-half net profit after tax of NZD 5.2 million, compared with the first-half loss.

Refinancing and a Roadmap Support the Reset

Synlait outlined its Stabilise, Simplify and Scale programme in March 2026. It also completed a North Island asset sale and finalised refinancing arrangements during the year. A June announcement described new bank funding arrangements totalling NZD 320 million. At 31 July, the company reported net Debt of NZD 215 million. These steps were part of a programme aimed at stabilising its financial and operating position.

Its Manufacturing and customer plans focus on operational excellence, product mix and quality. Synlait has identified Advanced Nutritionals, Ingredients, Foodservice and Consumer as areas for developing its revenue streams. The company has not suggested that the recovery is finished; its communications describe continued work to rebuild resilience and prepare the remaining Canterbury operations for future growth.

Leadership and the New Reporting Calendar

On 21 October 2026, Synlait appointed Leon Fung as permanent chief executive after he had served in the acting role since May. The company also changed its financial reporting balance date from 31 July to 31 December. It entered a five-month transition period running from August through December 2026 and stated it would not provide quantitative Earnings guidance for that shortened period.

Shares traded at AUD 0.40 on 5 November, with 1,680 shares reported as traded. Market Capitalisation stood at around AUD 241.28 million, while the one-year change was negative 33.33%. The next reported periods will provide further evidence of whether manufacturing stability and commercial execution can be maintained; the FY26 recovery measures alone do not establish a future result.