In a significant development within the dairy industry, Synlait Milk, a leading New Zealand-based dairy and infant formula company, has appointed Richard Wyeth as its new CEO. This important transition marks a new chapter for Synlait as it seeks to regain stability and profitability.
Previously, in January of this year, Richard Wyeth resigned from his position at Westland Milk Products after a four-year tenure. He will officially take on the role of CEO at Synlait Milk starting May 19. Until that date, Tim Carter will serve as the acting CEO. Following this interim period, Carter will revert to his role as the CEO of Dairyworks, a subsidiary of Synlait. As a reminder, Carter has held the position of acting CEO since October, stepping in after Grant Watson exited the company following a tumultuous year for Synlait.
Synlait’s chair, George Adams, praised Wyeth as a “seasoned, tested, and highly regarded CEO in New Zealand’s dairy industry.” This strong endorsement underscores the confidence that the board has in Wyeth’s capabilities to lead the company through its current challenges.
Adams further elaborated, stating, “Momentum is building within Synlait. Tim has played an instrumental role in driving this step change in the company’s performance and ensuring we are on track to return to profitability at half-year.” This statement reflects a proactive approach as the company works towards improved financial health.
It is worth noting that last year, Synlait faced significant financial hurdles, necessitating support from its largest shareholders. The company also encountered threats from its milk supplier network, which contemplated withdrawing supplies, coupled with a series of profit warnings that added to its challenges.
In September, the company successfully completed a debt restructuring with creditors, an essential step in stabilizing its finances. Additionally, Synlait settled a long-standing contractual and pricing dispute with the A2 Milk Company, its second-largest shareholder, in August.
Following these actions, Bright Dairy now holds a substantial 65.3% stake in Synlait, having actively participated in the recent equity raise. Simultaneously, A2 Milk retains a 19.8% ownership stake after also contributing to the financing efforts.
Looking ahead, Synlait’s half-year financial results, scheduled for release on March 24, are anticipated to showcase an EBITDA ranging from NZ$58 million to NZ$63 million (approximately $33.1 million to $36 million). This projection signals a marked improvement compared to the NZ$19.9 million reported during the initial six months of the 2024 fiscal period, as well as a recovery from the NZ$4.1 million loss recorded for the full fiscal year ending July 31.
The New Zealand and Australia-listed company has attributed its improved profitability to several strategic initiatives, including the acquisition of new business in nutrition products, the optimization of its product mix, and a reduction in workforce. These steps reflect a comprehensive strategy aimed at enhancing overall operational efficiency.
Moreover, Wyeth boasts a “long history within the New Zealand food and fibre sector,” notably recognized for establishing Open Country Dairy. In addition to his extensive experience in the dairy industry, Wyeth has held notable management positions in other reputable companies such as Coca-Cola Amatil and DB Breweries.
Expressing his optimism, Wyeth stated, “Synlait’s fundamentals are strong. The fact it is now on track to return to profitability, after overcoming a list of challenges, reflects exceptional capability within the team.” This outlook encapsulates the positive trajectory that Synlait aims to maintain going forward.