SML - Synlait

[KW]

Meanwhile, they are taking on more leasing obligations

A company controlled by New Zealand's wealthiest man has completed this year's biggest leasing transaction on a new $100 million Auckland building.
NZX-listed Synlait Milk has leased a huge new Wiri warehouse storage and office building from billionaire Graeme Hart for its new southeast Asia plant-based export operation.
But Synlait won't use the entire building right away. It has sublet "a significant portion" of the space it is renting, planning to grow into it over time, the spokeswoman said.
The new venture is being viewed as a major diversification for the business.

Other agents said the warehouse contract is 2023′s largest leasing deal, expected to net Hart's company around $5 million/year in rent but none of those details can be confirmed directly with Hart who rarely engages with the media.

[Minimoke]

Meanwhile, they are taking on more leasing obligations

A company controlled by New Zealand's wealthiest man has completed this year's biggest leasing transaction on a new $100 million Auckland building.
NZX-listed Synlait Milk has leased a huge new Wiri warehouse storage and office building from billionaire Graeme Hart for its new southeast Asia plant-based export operation.
But Synlait won't use the entire building right away. It has sublet "a significant portion" of the space it is renting, planning to grow into it over time, the spokeswoman said.
The new venture is being viewed as a major diversification for the business.

Other agents said the warehouse contract is 2023′s largest leasing deal, expected to net Hart's company around $5 million/year in rent but none of those details can be confirmed directly with Hart who rarely engages with the media.

It was only back in 2021 when they sold and leased back there Auckland William Pearce Drive property. This was done to pay down debt. And lease is for 10 years. I thought that place had offices - how many offices do they need?

[Basil]

It was only back in 2021 when they sold and leased back there Auckland William Pearce Drive property. This was done to pay down debt. And lease is for 10 years. I thought that place had offices - how many offices do they need?

Perfectly obvious mate that fancy new office is to handle the very strong growth they have....in their PINK and ESG team member numbers.

[KW]

Perfectly obvious mate that fancy new office is to handle the very strong growth they have....in their PINK and ESG team member numbers.

Hey Mr Accountant - considering the new requirement to treat lease obligations as a balance sheet liability, what does this do to their bank covenants?  

[Basil]

Hey Mr Accountant - considering the new requirement to treat lease obligations as a balance sheet liability, what does this do to their bank covenants? 

There are quite a few covenants there...all coming up for review in the next few months.
They probably look through the IFRS16 lease B.S...its too late in the day to be bothered looking into that, sorry.   We will have to wait and see but I think it's fair to say at this stage the clock is ticking quite loudly on getting a sale concluded on Dairyworks.
You're absolutely right they are forced sellers but forced sellers with a twist, within a very tight timeframe.

[Gerald]

NZX-listed Synlait Milk has leased a huge new Wiri warehouse storage and office building from billionaire Graeme Hart for its new southeast Asia plant-based export operation.

To be fair when the competition are doing so well, who wouldn't want to find some plant based cows to get in on the action 

You cannot view this attachment.

[Minimoke]

Value of Dunsandel plant just went  up today with announcement of SAMR approval.

"Synlait Milk Limited (Synlait) is extremely pleased to announce that the
State Administration for Market Regulation (SAMR) has notified it of the
successful re-registration of The a2 Milk Company's Chinese labelled ??(R)
Infant Formula (stages one, two and three) at its Dunsandel facility, which
will allow it to manufacture and export this product for the China market
until September 2027.

As the manufacturer of those products, the SAMR registration is held by
Synlait and attached to its Dunsandel facility. The re-registration is
pivotal for the ongoing success of the manufacturing and supply agreement
that Synlait and The a2 Milk Company have."

[KW]

I guess by selling off the cheese business at least they are being true to form 
If you don't laugh, you cry right?
https://www.interest.co.nz/rural-news/122396/westpac-economists-bemoan-our-inability-export-enough-cheese-time-soaring-global
"Westpac economists bemoan our inability to export enough cheese at a time of soaring global prices and have downgraded their forecast for Fonterra's milk price this season
The world's gone super-cheesy but we can't quite produce enough cheese to take advantage - and that could cost us with lower milk prices to farmers this season than might have been the case.
This is according to Westpac senior agri economist Nathan Penny, who has reduced his pick of the farmgate milk price for the season that just started this month to $8.90 per kilogram of milk solids from a previous high-flying pick of $10. He has maintained a "positive" dairy outlook, however.
Penny, who has a good track record among economists when it comes to picking the milk price, says in a Westpac Dairy Update that global dairy consumers "have fallen in love" with cheese, with cheese prices "sizzling at or near record highs since late 2021".
"Unfortunately, New Zealand is not well placed (relatively) to take advantage of this trend and total dairy farmer incomes will be lower than they would ordinarily be," he says.

[BlackPeter]

I guess by selling off the cheese business at least they are being true to form 
If you don't laugh, you cry right?
https://www.interest.co.nz/rural-news/122396/westpac-economists-bemoan-our-inability-export-enough-cheese-time-soaring-global
"Westpac economists bemoan our inability to export enough cheese at a time of soaring global prices and have downgraded their forecast for Fonterra's milk price this season
The world's gone super-cheesy but we can't quite produce enough cheese to take advantage - and that could cost us with lower milk prices to farmers this season than might have been the case.
This is according to Westpac senior agri economist Nathan Penny, who has reduced his pick of the farmgate milk price for the season that just started this month to $8.90 per kilogram of milk solids from a previous high-flying pick of $10. He has maintained a "positive" dairy outlook, however.
Penny, who has a good track record among economists when it comes to picking the milk price, says in a Westpac Dairy Update that global dairy consumers "have fallen in love" with cheese, with cheese prices "sizzling at or near record highs since late 2021".
"Unfortunately, New Zealand is not well placed (relatively) to take advantage of this trend and total dairy farmer incomes will be lower than they would ordinarily be," he says.

Yeah, I guess its quite said - there are so many fantastic products you can make out of milk ... and the only thing NZ seems to be able to produce is milk powder.

But yes, this is not Synlait's fault. I guess we just didn't learn to make great cheese using No 8 wire, and who would care about learning how to do it anyway?

[Teitei]

Yeah, I guess its quite said - there are so many fantastic products you can make out of milk ... and the only thing NZ seems to be able to produce is milk powder.

But yes, this is not Synlait's fault. I guess we just didn't learn to make great cheese using No 8 wire, and who would care about learning how to do it anyway?

Actually NZ makes some world class cheeses.

I have had well-heeled visitors from the UK, China, Canada, Singapore and HK asking to be taken to the supermarkets or better still for them, the Kapiti Fine Foods/Cheese shop to load up on cheeses to take back overseas.

$500 is kinda what they spend each time.

[BlackPeter]

Actually NZ makes some world class cheeses.

I have had well-heeled visitors from the UK, China, Canada, Singapore and HK asking to be taken to the supermarkets or better still for them, the Kapiti Fine Foods/Cheese shop to load up on cheeses to take back overseas.

$500 is kinda what they spend each time.

To be fair - none of the countries your visitors came from are well known for a great (or any) cheese culture . I suppose they are used to very low quality cheese (or none at all - HK). Just a case of "in the land of the blind the one-eyed is king ..."

You need to invite some visitors from Europe (like e.g. France, the Netherlands and Germany) to get a meaningful verdict on the quality of NZ cheese.

[KW]

Actually NZ makes some world class cheeses.

We probably do. And if we don't we probably could.  But instead our dairy "innovation" is focused on making fake cheeses.
Then they act surprised when nobody wants to buy it.

https://thespinoff.co.nz/business/04-10-2019/fonterra-factory-built-to-make-secret-recipe-mozzarella-sitting-all-but-idle

Fonterra once called it "the single largest foodservice investment in New Zealand's dairy industry".
Now its $240 million mozzarella cheese plant at Clandeboye near Temuka is sitting close to idle thanks to lack of demand.
Fonterra has described the cheese as "the jewel in its foodservice crown". Scientists at its Palmerston North Research and Development Centre found a way to make mozzarella in hours, rather than the months it takes to make the cheese traditionally. The cheese was already topping half of the pizzas in the fast-growing Chinese market, and the new Clandeboye plant had been constructed to meet demand, the co-operative said last year.
But this week Fonterra conceded 'Mozz 3', as it's known, has been running at just 25% capacity since the start of the milk season on June 1 because demand for the mozzarella has not been as high as initially forecast.

[Whome]

You need to invite some visitors from Europe (like e.g. France, the Netherlands and Germany) to get a meaningful verdict on the quality of NZ cheese.

[/quote]

Yep, amazing what the Europeans can produce from raw milk that has been subsidised by the EU to the tune of 30%. Cheap milk to make expensive cheeses.

[Teitei]

To be fair - none of the countries your visitors came from are well known for a great (or any) cheese culture . I suppose they are used to very low quality cheese (or none at all - HK). Just a case of "in the land of the blind the one-eyed is king ..."

You need to invite some visitors from Europe (like e.g. France, the Netherlands and Germany) to get a meaningful verdict on the quality of NZ cheese.

The visitors don't just eat NZ cheeses. The ones from the UK, Singapore and HK can get cheeses from any country in the world! To put you in the picture, they only eat at Michelin class or equivalent restaurants where ever they are. In NZ, they dine only at The French Cafe, The Grove & the now closed SidArt to give you an idea.

Point is that NZ does produce some great cheeses but ultimately, does come down to in dividual tastes as well.

[KW]

https://www.interest.co.nz/rural-news/122408/guy-trafford-reviews-ups-and-downs-a2-milk-processor-synlait-tracking-mistakes