Attempting to strengthen its financial position, New Zealand dairy company Synlait Milk has appointed CFO Rob Stowell as its chief commercial officer. In the interim, Charles Fergusson, the company’s director of on-farm excellence and business sustainability, will take on the CFO role.
Stowell will be tasked with overseeing key strategic initiatives at Synlait, including the sale of Dairyworks, a review of assets in New Zealand’s North Island, a probable equity raise, and managing the company’s banking syndicate relationship.
This move comes after Synlait recently secured a debt extension after experiencing a loss and revising its profit expectations. Following a missed NZ$130m ($77.5m) debt repayment, Synlait has been given until July 15th at the latest to meet its financial obligations.
Additionally, Synlait is set to launch a review of its infant formula blending and canning plant in Pokeno on the North Island, and the manufacturing facility in Auckland. These efforts are part of the company’s strategy to reduce its NZ$559m debt and enhance financial performance.
Furthermore, Synlait aims to sell Dairyworks, a plan initially announced last year. The company reported a net loss after tax of NZ$96.2m for the first half of the fiscal year, a significant contrast to the NZ$4.8m profit recorded a year earlier. Adjusted net loss after tax stood at NZ$17.4m, compared to NZ$8.9m in the previous year.
Despite the challenging financial results, revenue for the period saw a modest 3% increase to NZ$793.5m.