Highlights

• Synlait reported a stronger second half of FY26 as operational stability improved production performance.
• Underlying EBITDA reached $46.3 million, while second-half reported NPAT turned positive at $5.2 million.
• Synlait shares rose 13.33% to AU$0.340 on 28 September 2026.

Synlait Shares Rally After FY26 Results

Synlait Milk Limited (ASX: SM1) was in focus on 28 September 2026 after the company released its financial results for the 12 months ended 31 July 2026. The update highlighted a difficult first half followed by a marked improvement in operational and financial performance during the second half. The market response was positive, with Synlait shares climbing 13.333%, or AU$0.040, to a current market price of AU$0.340.

Operational Recovery Strengthens Second Half

Synlait’s FY26 results reflected the impact of challenges experienced during the first half, but operational stability improved significantly in the latter part of the year. Manufactured in Spec improved from 91% in the first half to 95% in the second half, while plan attainment rose from 90% to 103%. These operational gains were reflected in Synlait’s financial results. Reported EBITDA moved from a $34.7 million loss in the first half to $42.8 million in the second half, while reported NPAT improved from an $80.6 million loss to a $5.2 million profit over the same periods.

For the full FY26 period, Synlait recorded reported EBITDA of $8.1 million and underlying EBITDA of $46.3 million. The company reported a net loss after tax of $75.4 million, compared with an underlying net loss after tax of $21.6 million. Revenue stood at $1.94 billion, while net debt was $215.0 million.

Milk Price Supports Recovery Strategy

Synlait set its final base milk price for the 2025/26 season at $9.69 per kg of milk solids, with average incentives of $0.38 per kgMS, bringing the total average farmer payment to $10.07 per kgMS. The company forecasts a base milk price of $9.50 per kgMS for 2026/27, excluding incentives. Synlait is progressing its “Stabilise, Simplify and Scale” recovery roadmap, with a focus on improving returns from its Canterbury assets. The company plans to outline its scaling strategy in 2027.

Synlait’s Recovery and Growth Outlook

Synlait has moved its financial year-end from 31 July to 31 December, resulting in a five-month transitional reporting period ending 31 December 2026.  The company will not provide quantitative earnings guidance for this period because of its short and non-comparable nature. For the transition period, management will focus on operational and quality performance, product and customer mix optimisation, and opportunities across Advanced Nutritionals, Ingredients, Foodservice and Consumer channels.

Note- All data presented is based on information available at the time of writing.

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