Update shared on 14 Nov 2025
Narrative Update on Synlait Milk
Analysts have maintained Synlait Milk's fair value estimate at $0.73 per share. They cite unchanged forward expectations, even though there has been a minor increase in the discount rate.
What's in the News
- Auditor KPMG expressed doubt about Synlait Milk's ability to continue as a going concern in its Annual Report for the period ending July 31, 2025 (Annual Report).
- Abbott Laboratories is reportedly in talks to acquire Synlait's Pokeno manufacturing facility. This facility has been under strategic review due to operational and financial challenges (Key Developments).
- Synlait previously reviewed its North Island assets as part of a business recovery plan after facing significant debt and receiving a bailout from major shareholder Bright Dairy (Key Developments).
- The company stated it was not actively seeking a buyer for its Pokeno operations, but is open to compelling offers (Key Developments).
Valuation Changes
- Fair Value Estimate: Remains unchanged at NZ$0.73 per share.
- Discount Rate: Has risen slightly from 6.90% to 7.10%.
- Revenue Growth: Remains unchanged at approximately -3.4%.
- Net Profit Margin: Remains steady at about 1.69%.
- Future P/E Ratio: Has increased marginally from 19.21x to 19.32x.
Disclaimer
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