Synlait Milk has announced the resignation of CEO Richard Wyeth, who has led the New Zealand-based dairy company for a year. The company confirmed his departure in a stock-exchange filing on May 14, noting that the board has accepted his resignation.
Wyeth will remain with Synlait until June 30 to facilitate a smooth transition. He assumed the CEO position on May 19 of the previous year, following four years at Westland Milk Products. Synlait acknowledged Wyeth’s strong contributions during a particularly challenging time for the company.
Effective immediately, the board has appointed director Leon Fung as acting CEO. Fung brings valuable experience, having previously held key roles, including CEO of NIG Nutritionals and operations director at Danone’s Oceania division. Since joining Synlait as a director in June 2024, he has built a solid understanding of the company’s operations and challenges.
In addition to the leadership change, Synlait recently announced the resignations of its chief quality officer and chief supply chain officer. This comes on the heels of the company’s plan for recovery after reporting a significant half-year loss of over NZ$80 million (approximately US$47.1 million).
Synlait recorded a net loss of NZ$80.6 million for the six months ending January, contrasting sharply with a net profit of NZ$4.8 million from the previous year. Additionally, the company reported an EBITDA loss of NZ$35 million, a notable shift from a positive EBITDA of NZ$63 million during the same period last year. Despite these setbacks, revenue increased by 3.5%, reaching NZ$949 million.
Wyeth expressed frustration over the financial results, stating, “The numbers we are presenting today are frustratingly disappointing. They are the result of a period where Synlait faced multiple headwinds and had little choice as to how to deal with them.”
Two weeks later, Synlait announced the successful sale of assets in New Zealand’s North Island to U.S.-based Abbott Nutritionals. Wyeth labeled this deal as “an important turning point for Synlait,” aimed at simplifying the business structure.
Recently, A2 Milk Co., a significant Synlait customer, initiated a recall of infant formula after the presence of the cereulide toxin was detected. While three batches were voluntarily retracted, A2 Milk indicated that the product had been discontinued and removed from sale prior to the recall announcement on May 1. Synlait is collaborating with A2 Milk to assist with the recall while reiterating that the affected formula had already been withdrawn.
