SML - Synlait

[Minimoke]

Seems the debt management hasn't made them a better run company. Just awful results today and market doesn't like it. Down  19.7% to $0.51

[Basil]

Does a leopard change its spots ?

Before buying shares in any company people need to have a long hard look at their most recent history as that's the very best guide to the future.

"The bitter taste of poor quality lingers long after the thrill of an apparent bargain"

Sadly this well known saying applies to many companies on the NZX including some who used to be market darlings many years ago.

[winner (n)]

even when share price was $12 odd the signs were there that Synlait was never going to great .... just look at Cash Flow Statement over the years

HEY basil - didn't you bail at $12?

[Basil]

Somewhere around there mate.

[Minimoke]

I have to admit SML has ben quite kind to me.

My last trade was in Aug 2024. I bought then sold 2 weeks later for a nice 12% gain.

Prior to that I was buying back in 2017/18 and sold with a 25% gain.

Am I interested in buying now. Not on your nelly!

There was a time someone could have written a text book on this company. Now I reckon they would be up to volume 4.

[Auto Rower]

Seems the debt management hasn't made them a better run company. Just awful results today and market doesn't like it. Down  19.7% to $0.51

Just to be clear this is an update .
And I appreciate that synlaits management are actually updating with news good or bad in this case penno effect still lingering.

[Minimoke]

Just to be clear this is an update .
And I appreciate that synlaits management are actually updating with news good or bad in this case penno effect still lingering.

The pink trucks are still around so it seems the ghost of Leon Clement still haunts them.

I wonder if they still do paid tree planting day?

[Auto Rower]

The pink trucks are still around so it seems the ghost of Leon Clement still haunts them.

I wonder if they still do paid tree planting day?

Yes I think they are still planting native weeds ,in the pink P C trucks .
Just wonder what company is the most P C  synlait & the warehouse probably up there looks unprofitable eh !!

[Minimoke]

Synlait also not feeling the love. Dropped down to a 12 month low of $0.46 today. With A2 loading itself up with more cash (they still have $900,000,000 in the bank) Synlait might be concerned they are going to loose even more of A2's business to something else A2 buys.

[Ferg]

Synlait result out today for HY 2026.
https://www.nzx.com/announcements/469645

The highlights
 ~ Revenue of $949m (up $32.3m)

The lowlights:
 ~ Gross profit of $3.1m (down $83.9m).
 ~ EBITDA loss of $34.7m
 ~ net loss after tax of $80.6m
 ~ Net debt of $472m (up 88%)

There is probably some nuance to these figures but meh.....

[Minimoke]

Synlait result out today for HY 2026.
https://www.nzx.com/announcements/469645

The highlights
 ~ Revenue of $949m (up $32.3m)

The lowlights:
 ~ Gross profit of $3.1m (down $83.9m).
 ~ EBITDA loss of $34.7m
 ~ net loss after tax of $80.6m
 ~ Net debt of $472m (up 88%)

There is probably some nuance to these figures but meh.....

Terrible results.
Sales down $1.5 m. You wouldn't think that would be much of a problem.

But!!

Cost of sales UP $94.5m

Net profit / loss has swung $85.2m  to the loss side.

Looks to me like they aren't paying their bills on time. Payable have increased $158m. Which is odd because loans have increased $193m. So they money cant be going to suppliers.

Liabilities up $155m. While assets have dropped $707m

They only have $32m cash on hand worse than the $49m they had in Jan 2025 and the $78m in July 2025

Cashflow is dire. They were short $12m in Jan 2025. They are $183m short jan 2026

Where are they going to find the $130m they need to repay Bright Dairy in July 2026?

[BlackPeter]

Terrible results.
Sales down $1.5 m. You wouldn't think that would be much of a problem.

But!!

Cost of sales UP $94.5m

Net profit / loss has swung $85.2m  to the loss side.

Looks to me like they aren't paying their bills on time. Payable have increased $158m. Which is odd because loans have increased $193m. So they money cant be going to suppliers.

Liabilities up $155m. While assets have dropped $707m

They only have $32m cash on hand worse than the $49m they had in Jan 2025 and the $78m in July 2025

Cashflow is dire. They were short $12m in Jan 2025. They are $183m short jan 2026

Where are they going to find the $130m they need to repay Bright Dairy in July 2026?

I suspect the sale of their NI assetts to Abbott might cover that.

But yes, things certainly looked better 8 years ago when the SP was above $13. Just shows that even the almighty market has no clue whatsoever about the future of stocks.The only thing one can predict with hype driven stocks is that things tend to change ... and after big ups often come long downs.

[Minimoke]

I suspect the sale of their NI assetts to Abbott might cover that.

But yes, things certainly looked better 8 years ago when the SP was above $13. Just shows that even the almighty market has no clue whatsoever about the future of stocks.The only thing one can predict with hype driven stocks is that things tend to change ... and after big ups often come long downs.

That $307m will get gobbled up in no time

[Minimoke]

CEO going. Is he walking the plank?. Is this related to the recent product recall of A2M formula in the USA. Or the manufacturing problems?

[Minimoke]

Just footnoting A2 today announce they have got SAMR approval for pokeno and expect product by end of calendar year. A2 now even more less reliant on Synlait.