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Investing.com-- Synlait Milk Ltd (NZ:SML) reported on Monday a return to profitability in its half-year results but saw its shares slump 14% after issuing a cautious outlook.
The New Zealand-based dairy processor posted a net profit after tax of NZ$4.8 million for the six months ended January 31, 2025, a significant turnaround from last year’s NZ$96.2 million loss.
The turnaround was driven by stronger demand for its Advanced Nutrition products, improved commodity prices, and cost-cutting measures. Revenue rose 16% to NZ$916.8 million.
Despite the rebound, Synlait warned that financial progress in the second half of FY25 would be slower, citing challenges related to milk stream returns and foreign exchange risks.
Shares of the company plunged 14% to NZ$0.87 as of 00:36 GMT, to their lowest level since Feb 28.
The result has shown solid progress, but there is still "a lot of work to do,” Chairman George Adams said in a statement.