Synlait Milk says not involved in talks with A2 Milk, Fonterra about potential takeover
Both Fonterra and a2 Milk have refused to comment on 'market speculation'.
Synlait Milk has clarified it is not part of any talks with A2 Milk Company or Fonterra regarding a potential takeover. The New Zealand Exchange announcement from Synlait Milk followed media reports suggesting third parties were involved in a transaction. Both Fonterra and a2 Milk have declined to comment on the market speculation.
Despite A2 Milk's significant drop in full-year net profit by 44% to $113.6 million in the year ended June, underlying profit increased nearly 5.5% to over $300 million, excluding one-time costs and losses. A2 Milk's CEO, David Bortolussi, did not comment on the speculation surrounding the potential buyout of its long-term supplier, Synlait, which faced a challenging period.
Synlait reported an $80.6 million loss in the six months to late January, with debts reaching $472.1 million. Synlait's CEO, Richard Wyeth, and Chairman, George Adams, emphasized during the results presentation to the New Zealand Exchange that the financial outcome should not define the company's future. They acknowledged the need for positive financial performance amid multiple headwinds and a realistic roadmap to recovery, aiming to position Synlait for future growth, enhance high-margin products from existing assets, and accelerate growth opportunities.
Last year, Synlait sold its North Island operations, including the Pōkeno site, for $307 million to improve its financial position.
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