From the CEO | HY26 and the recovery roadmap

Hello Farmers,

As I have said numerous times since the release of our half-year result, there is one core takeaway: the numbers do not reflect Synlait’s future.

They are the result of a period where the company faced multiple headwinds with little choice as to how to deal with them.
At every stage, we carefully analysed, costed, and weighed up Synlait’s options. Even with the benefit of hindsight, there is little we could have done differently that would have improved this result.

In summary, the result reflects a severe lack of optionality, not effort or capability – although recovery will take time.

Moving forward 
Alongside the result, Synlait released a recovery roadmap – ‘Stabilise, Simplify and Scale’. This contains three interconnected horizons that we will deliver at pace.

We have already activated the first horizon (Stabilise) across Synlait. Overall, this is about positioning the company for future growth through delivering operational stability that meets customer expectations, strengthens financial resilience and builds greater optionality.

We have already made progress, including:

• A wholesale reset of our quality function – from policy settings and training to environmental controls and hygiene practices.
• Strengthening training of our frontline teams so we uplift operational stability and deliver products right first time.
• Our renewed ELT is now in place in Canterbury, and we have a new robust performance framework with the Synlait Spirit values aligned to our employee experience.
• We have reset our Revenue Strategy, streamlining customer onboarding and growing our offering.

The sale of our North Island assets, which is set to complete this week, will see us take another step forward. The transaction will leave us with reduced debt levels, a smaller and stronger business.

I have been asked whether this recovery roadmap is ambitious enough – that’s a good question given Synlait has a history of relentlessly pursuing growth. This next period will see us heighten our focus on the basics as we strengthen the business, so it has the capability to capitalise on future opportunities.

Another thing I have said repeatedly since the release of our result is that we, Synlait’s leadership team, are ambitious. We will work hard so that the next 12 to 24 months will be seen as a period where Synlait under promised and over delivered.
Thank you for your support while we do that.

Richard Wyeth
CEO