Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

What can A2 Milk (ASX:A2M) investors learn about the Synlait (ASX:SM1) HY23 report?

Owners of A2 Milk Company Ltd (ASX:A2M) shares can learn quite a bit from the Synlait Milk Ltd (ASX:SM1) HY23 report.

Owners of A2 Milk Company Ltd (ASX: A2M) shares can learn quite a bit from the Synlait Milk Ltd (ASX: SM1) HY23 report.

A2 Milk owns a large amount of Synlait shares and Synlait is one of A2 Milk’s main suppliers.

Synlait has a nutritional facility that allows it to make formulas to specific customer requirements. It collects more than 800 million of litres of milk each year. It’s capable of processing 4.2 million litres of raw milk per day, from which up to 450 metric tonnes to 500 metric tonnes of milk powder can be produced. It also has canning facilities.

Synlait HY23 half-year result

Here are some of the highlights from the result:

The business continues to “navigate” high milk and cheese commodity prices and expansion into overseas markets. But, Synlait said that the performance of its ingredients and consumer businesses remain “strong”. Combined, the business units will “contribute more than in FY22”.

But, the company said that a range of economic and climactic factors have impacted the stability of Synlait’s daily operations. It talked about cost challenges on the business, as well as supply challenges, labour challenges and extreme weather events.

What A2 Milk share owners can learn from the result

Synlait did say that its advanced nutrition forecast demand and production has been “reduced or delayed following forecast changes by Synlait’s largest customer during the FY23 first half and more recently by other customers.”

What that suggests to me is that it’s likely talking about A2 Milk.

Synlait also said that while underlying momentum is lifting, its full financial recovery will take “longer than planned”.

The company also said that it’s on track for re-registration in the China market for access to continue. It said that re-registration and commencement of production in the FY23 fourth quarter.

Outlook and thoughts on the Synlait share price

It’s expecting its full year FY23 NPAT to be between $15 million and $25 million.

I think this is interesting for A2 Milk shareholders, but I’m not sure about how strong Synlait can become. However, the huge fall of the Synlait share price could be a recovery opportunity. But I’m not looking to buy shares.

$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, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content