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Synlait Milk underwhelming half year result to possibly influence A2 Milk and Bellamy’s

New Zealand listed shares in Synlait opened 12% lower this morning signalling a disappointing result.

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The net profit of $37.3 million was lower than analyst forecasts

Synlait Milk Ltd (ASX:SM1) (NZE:SML) has this morning released its half-year financial results for the six months ending 31 January 2019.

The dual-listed dairy processing company operating out of New Zealand has revealed net profit of $37.3 million for the half, which is 9.6% lower than the prior corresponding period.

Although net profit was lower in the first half of FY19, the company maintained its previously given guidance that full-year profit will grow compared to FY18 but at a lower rate.

This infers a strong second half for the company.

Synlait also said it remains on track to deliver canned infant formula volume of 41,000-45,000 tonnes with significantly higher volumes forecast in the second half.

It is possible that Synlait’s half-year result has influence over how other listed producers and sellers of infant formula trade today which includes A2 Milk Company Ltd (ASX:A2M) and Bellamy’s Australia Ltd (ASX:BAL).

Quick facts: Synlait Milk Ltd

Price: 6.59 AUD

ASX:SM1
Market: ASX
Market Cap: $1.18 billion
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