WELLINGTON, New Zealand–Synlait Milk Ltd. reported a slump in first-half earnings and forecast a “broadly breakeven” result for the full year on reduced demand from a key customer and pandemic disruptions to its business.
The New Zealand infant-formula producer on Monday said it has negotiated increased debt ratios with its banking syndicate to manage financial risks while its business faces significant uncertainty and volatility. Its half-year net profit was 6.4 million New Zealand dollars ($4.5 million), down 76% from a year earlier.
Synlait said it can’t forecast when demand from its customer a2 Milk Ltd., which has faced a drop in Chinese surrogate shopping sales due to the pandemic, will recover.
The company said it expects global shipping delays brought on by the pandemic to continue and weigh on its full-year results.
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(END) Dow Jones Newswires
March 28, 2021 16:13 ET (20:13 GMT)
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