June 4, 2014
Synlait Milk set to export finished infant formula to China
Synlait is confident of receiving the required Chinese regulatory approval to export finished infant formula into China, according to Synlait Milk managing director, John Penno.
"Along with this facility our other growth initiatives are on track. Commercial production of the high-value product, lactoferrin, commenced in April," said Penno.
"The infant formula and nutritional market continues to prove challenging due to regulatory changes in China and it is clear that we will not meet our volume targets for this financial year," said Penno. "However, the development of this business in key markets outside of China with our tier one multi-national companies continues to be strong and we remain confident of meeting our long term objectives."
Synlait recently reduced its forecast net profit after tax of approximately NZD7.5 million for the financial year due to a reduced advantage from a favourable product mix in the second half of the year, and a consistently high New Zealand foreign exchange rate.
Synlait Milk Chairman Graeme Milne says as a result the forecast FY2014 net profit after tax has been revised from a range of NZD25.0 to NZD30.0 million to a range of NZD17.5 to NZD22.5 million. The prospectus forecast is NZD19.8 million.