Synlait Milk Limited (SMLKF) Q2 2026 Earnings Call Transcript

Hannah Lynch
Head of Milk Supply, Strategy & Corporate Affairs

Good morning, everybody, and welcome to Synlait Limited’s Half Year Results Conference Call. My name is Hannah Lynch. I’m the Head of Milk Supply Strategy and Corporate Affairs. I’ll hand over shortly to our CEO, Richard Wyeth; and our CFO, Andy Liu, who will provide a short overview of today’s results. We’ll then open the line for Q&A. If you’ve got any follow-ups following today’s call, please do feel free to reach out to me directly. Otherwise, over to you, Richard.

Richard Wyeth
Chief Executive Officer

Thank you, Hannah. Welcome, everyone, to our half year results investor presentation. I have 2 words to describe this result: frustratingly disappointing. At a macro level, the result has been impacted by 3 core issues: the need to adjust our manufacturing plan to meet Advanced Nutrition requirements; lower returns from our ingredients business; and a decision on tax assets. Points 1 and 2 delivered a dairy processes perfect storm, and we will go into that shortly. The third point is simply that Synlait has taken a conservative approach and not recognizing further deferred tax assets arising from unused tax losses beyond those recorded at 31 July 2025.

Our headline results are a reported EBITDA loss of $34.7 million, an overall net loss after tax of $80.6 million and an 88% increase in debt to $472.1 million. The good news is that those numbers do not reflect Synlait’s future.

Today, we are presenting you with