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WELLINGTON, New Zealand – Synlait Milk Ltd. reported a decline in its first half results and forecast a “broadly balanced” result for the full year due to reduced demand from a key customer and pandemic disruptions to its business.
The New Zealand infant formula producer said on Monday it had negotiated increased debt ratios with its banking union to manage financial risks as its business faced significant uncertainty and volatility. Its half-year net profit was NZ $ 6.4 million ($ 4.5 million), down 76% from the previous year.
Synlait said she could not predict when demand for her customer a2 Milk Ltd., which has faced declining sales of substitute products in China due to the pandemic, will pick up.
The company said it expects global shipping delays caused by the pandemic to continue and weigh on its annual results.
Write to Stephen Wright at [email protected]
(END) Dow Jones News Wire
March 28, 2021 16:13 ET (20:13 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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