Canterbury based Synlait Milk has confirmed a near-doubling of profit in the last financial year, however is signalling that its forecast milk price payout could be revised down.
At its annual shareholders meeting, the company announced for the year ending July 31, 2018 (FY18) a net after tax profit (NPAT) of $74.6 million - almost double the NPAT of $39.5 million announced for the same period last year.
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Synlait's Chairman, Graeme Milne, said an increase in finished infant formula sales helped to drive the FY18 profit.
"This was enabled by a number of investments in the blending and consumer packaging space including our second Dunsandel wetmix kitchen and our Auckland blending and consumer packaging facility," he said.
"Both these projects have allowed us to increase our finished infant formula capacity, which has helped us to deepen and strengthen the relationships we have with our existing infant formula customers."
While the result has shareholders celebrating, the company looks likely to drop its milk payout price to suppliers.
"The in-market milk price forecast for FY19 at $6.75 kgMS is looking less likely given current market conditions," he said.
"Therefore, our next update scheduled for the end of January 2019 will most likely be lower."