Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Synlait (ASX:SM1) share price rises 5% after update

The Synlait Milk Ltd (ASX: SM1) share price has gone up 5% after the company gave an update.

Synlait is a nutritional business that’s an important part of the dairy supply chain. The company says that it “was founded to ensure that global consumers were able to access some of the best that New Zealand dairying had to offer. That’s where the name Synlait comes from – synergy and milk.” It has blending and consumer packaging facilities to assist customers, such as A2 Milk Company Ltd (ASX: A2M).

Synlait’s update

Synlait said that it has updated its forecast base milk price for the 2020 / 2021 season to $7.20 per kilo of milk solid (kgMS), up from $6.40 per kgMS.

The company’s decision to increase its forecast base milk price was driven by the strong increase in dairy commodity prices of recent months and the company’s view that commodity prices will remain around current levels for the remainder of the milk season.

Management comments

Synlait national milk supply manager David Williams said: “Despite the wider global uncertainty, dairy commodity prices have remained robust and a higher forecast base milk price will be welcomed by our Synlait farmer suppliers. We are grateful for their continued support.”

Time to jump on Synlait shares?

Synlait said that this is based on the best information available and it will continue to monitor movements and keep its farmer suppliers updated.

The Synlait share price has almost halved over the past year. But shares being lower than the past doesn’t mean it’s better value today.

As a major supplier to A2 Milk, Synlait has been suffering alongside A2 Milk with the drop in local demand and the difficulties it’s facing relating to China.

With volumes expected to be lower, Synlait said that its initial estimates show that overall FY21 net profit after tax (NPAT) is going to be down approximately 50% compared to FY20.

On top of that, A2 Milk is diversifying its manufacturing base, so it will be less reliant on Synlait.

If I were thinking about investing in Synlait shares, I think I’d rather buy A2 Milk shares because of the potential global growth prospects.

Instead of Synlait or A2 Milk, I suggest getting a free Rask account and accessing our full stock reports. Click this link to join for free and access our analyst reports.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content