Full Year Results Investor Presentation 2023
SYNLAIT'S FULL YEAR 2024 OUTLOOK
FY 23 was highly challenging for Synlait with material reductions in customer demand, CO2 shortages, extreme weather
events, the COVID-19 pandemic, inflationary impacts, ongoing investments in new product workstreams (i.e., UHT cream and
Advanced Nutrition customer growth), and the launch and stabilisation of the company's new enterprise resource planning
(ERP) system.
Looking ahead to the 2024 financial year, Synlait could still face challenging China market dynamics, softening global
conditions more generally, and continued inflationary pressures across its cost base, which could impact future customer
demand and the company's overall profitability. Synlait does, however, expect Advanced Nutrition volumes to continue to
grow at the Pokeno site in FY 24, and the company's overall EBITDA performance is also expected to improve in FY 24,
compared to FY 23.
The a2 Milk Company's purported cancellation of the exclusivity arrangements under the Nutritional Powders Manufacturing
and Supply Agreement (NPMSA) for the a2 PlatinumⓇ and other nutritional products is not expected to impact Synlait's FY 24
results. Synlait disputes that The a2 Milk Company has the right to cancel the exclusivity arrangements.
While Synlait is confident in its strategy to right-size its cost base to current activities and its near-term Advanced Nutrition
and Foodservice growth opportunities, the uncertainty of broader macroeconomic factors means the company will not
provide guidance at this time.
Synlait is committed to its refreshed strategy to create a more focused company and remains largely on track to meet its five-
year (FY 28) strategic ambitions.
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FULL YEAR RESULTS INVESTOR PRESENTATION 2023View entire presentation