SML - Synlait

[Minimoke]

I really have difficulty with these companies that start calling their employees "directors". Today it is announced Director Martijn Jager is leaving. And Adam Maxwell is a new director. Bu these folk were just in charge of nutritionals and ingredients.

With the new international client coming on board I would have thought it would have been quite a good time for a boss of Nutritionals and Ingredients

[Basil]

Mickey mouse would have done a better job in recent years.

[Minimoke]

Mickey mouse would have done a better job in recent years.

I wonder if Boyd Williams will be next to go. Director of, among other things "performance" (Wasn't mickey mouse a performers?

I see a pile of performance rights got cancelled today.

[Auto Rower]

I really have difficulty with these companies that start calling their employees "directors". Today it is announced Director Martijn Jager is leaving. And Adam Maxwell is a new director. Bu these folk were just in charge of nutritionals and ingredients.

With the new international client coming on board I would have thought it would have been quite a good time for a boss of Nutritionals and Ingredients

When is this new customer being revealed it was supposed to be mid 2022 not late 2022 its beginning to drag out now

[mcdongle]

When is this new customer being revealed it was supposed to be mid 2022 not late 2022 its beginning to drag out now

Maybe things are not going as planned

[Basil]

I see their bonds are now over 8%.  Market starting to get worried ?

[Sideshow Bob]

Fonterra signalling a slight downward movement of milk solid price this morning - but in a still a wide range

[Minimoke]

On the back of A2M's good news today. Not so good news from Synlait (or maybe some really good news) Hamish Reid has decided to leave the company - instead preferring the life as a consultant. That's a few senior execs walking the plank recently.

Not necessarily a bad thing - Hamish can go off and help the micro brewers and sandal makers with their B Corp accreditations.

[Hectorplains]

Results due 26th.  I suspect, contrary to popular sentiment here, that they will surprise on the plus side, with a positive forward guidance.      

[Minimoke]

Results due 26th.  I suspect, contrary to popular sentiment here, that they will surprise on the plus side, with a positive forward guidance.      

We might even get to hear who the mystery international customer is. Or we may not.

[Auto Rower]

Either they do so on the 26th or make it next year for reasons to be revealed  surprise Surprise

[Basil]

With Synlait what we mostly have is talk and promises that things are going to get better.
Maybe reflect on how they have performed over the long run.
In December 2013 after their first 6 months of trading they were $3.82.  Here we are in 2022 9 years later and the share price is $3.42, (from Reserve bank inflation calculator they should be $4.58 to have maintained relative value) so they have lost ~ 25% of their value in the last 9 years and never once paid a dividend.

Of course we have the well discussed Pokeno fiasco fresh in our minds and their endless ESG annunciations to reflect on too.

Trust us we know what we are doing has been their approach the whole way.
These guys have done nothing but destroy trust and destroy shareholder capital. 
I do not trust them and do not trust any forward looking statement they make.
 

[winner (n)]

With Synlait what we mostly have is talk and promises that things are going to get better.
Maybe reflect on how they have performed over the long run.
In December 2013 after their first 6 months of trading they were $3.82.  Here we are in 2022 9 years later and the share price is $3.42, (from Reserve bank inflation calculator they should be $4.58 to have maintained relative value) so they have lost ~ 25% of their value in the last 9 years and never once paid a dividend.

Of course we have the well discussed Pokeno fiasco fresh in our minds and their endless ESG annunciations to reflect on too.

Trust us we know what we are doing has been their approach the whole way.
These guys have done nothing but destroy trust and destroy shareholder capital. 
I do not trust them and do not trust any forward looking statement they make.
 

Suppose you look back these days and reflect how clever you were selling at $11/$12 or whatever ....especially when fundamentals at that time were saying only worth $3/$4 ...well done sir

I've still got a morbid fascination with keeping my SML financial model up to. Date ...just in case they look good and might be a buy. You never know.

[Minimoke]

Odd observation> I was coming back from the coast the other day and two Synlait tankers heading up over Arthurs towards the coast. One was grinding up the hill really slow. As if it was chock full of milk. No idea what they were up to.

[winner (n)]

AMAZING TURNAROUND - a $29m loss into a $39m profit

Good stuff and well done Synlait

And F23 looking good - npat about $80m by looks of it

And these new customers will see proft over $100m in F24 .... cool

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SML/399427/379770.pdf