SML - Synlait Milk Ltd

[Citizen Erased]

I see a brighter furure for Synlait, more diverse product range , ATM are only marketing A2 Milk.

And A2 infant formula and A2 yoghurt.

[mcdongle]

Anyone know how the Lactoferrin plant is coming along??

[K1W1G0LD]

And A2 infant formula and A2 yoghurt.

thats interesting, I have'nt researched ATM , always thought it to be a niche (and expensive) product and not one I need to buy fortunately like the majority of the worlds population.

[000831]

for SML, the growth is secured by fixed contracts. ATM growth prob more depends on its own marketing move.

Personally, I think that SML may be less risky than ATM.

When Milford fund buy in?

[K1W1G0LD]

Interesting depth change from two days ago, yesterday a 400k package of shares went through off market seems to have sparked things.
Plus waiting on announcement of forecast which they have said will way above prior.
Announcement on that early in the new year, wish they would hurry up the market is going nuts for good news announcements.
Anyone know when they will put out the forecast?

goldfish, just heard back from a chap called Michael Wan at SML , see following message.


At this stage we plan to provide further guidance on our forecast for the FY 14 year in late January/early February.

The half year result announcement will be late March.

So not to long to wait for some good? news re revised forecast.



Kind regards

Mike

[goldfish]

goldfish, just heard back from a chap called Michael Wan at SML , see following message.


At this stage we plan to provide further guidance on our forecast for the FY 14 year in late January/early February.

The half year result announcement will be late March.

So not to long to wait for some good? news re revised forecast.



Kind regards

Mike

Good stuff, thanks for sharing.

[Slam dunk]

https://www.nzx.com/companies/SML/announcements/246418

[FarmerHamilton]

https://www.nzx.com/companies/SML/announcements/246418

11-12-2013, 07:37 PM #415
FarmerHamilton

Member Join DateMar 2013Posts197

"Synlait Milk to beat targets"

Looks like this was the reason for todays high closing price. We'll see what happens tomorrow.





Today's announcement from Fonterra was SPECTACULARLY good news for Synlait Milk. I estimate that single announcement will probably increase the bottom line by between $10m and $15m for the 13/14 financial year .

WOW !!!



Looks like my $10-$15m above prospectus is exactly the range that chairman Milne is using ....

Nice !!

Disc: Holding 64,299 SML

[000831]

As tech stocks pull back, the smart money will flow into defensive dairy sector again.

DISC: HOLDING SIGNIFICANT AMOUNT

[000831]

Continuing high international commodity prices have resulted in Synlait Milk increasing its forecast milk price for the FY2014 season from $8.00 per kgMS to a range of $8.30 to $8.40 per kgMS.
The Company also lifted its advance rates for the season effective from January, to be paid February, from $5.00 per kgMS to $6.40 per kgMS.
Synlait Milk Chairman Graeme Milne says it is the Company’s policy to pay its contract milk suppliers a competitive market price and the increase reflects the sustained high commodity prices.
“Our forecast FY2014 financial performance continues to improve and we expect the Company will benefit from both earnings growth in our value added categories and a favourable product mix for the remainder of this financial year. Assuming current market conditions prevail our FY2014 net profit after tax will be significantly ahead of the prospectus forecast of $19.8 million, and is forecast to be in the range of $30.0 to $35.0 million,” said Mr Milne.
Synlait Milk Managing Director John Penno says despite challenges associated with Chinese government regulatory reform the Company is confident of delivering on its infant formula and nutritional products strategy.
“In the short term these regulatory changes will continue to result in considerable disruption in the Chinese market and we may not achieve our forecast target of 10,000 metric tonnes of infant formula and nutritional sales this financial year. However, we remain confident that these changes will validate the strategy of our business over time and will underpin our ability to meet our long term targets through expected volume growth from our key customers in this market.”
“Meanwhile business development continues in key markets outside of China. We expect to commence production of milk powders as infant formula ingredients for two new tier one multi-national companies in the second half of this financial year,” said Mr Penno.
Synlait Milk also expects to commission its lactoferrin plant late February with commercial production commencing from early March. While this is a little behind the planned commissioning date the Company expects to exceed its forecast two metric tonnes of lactoferrin sales in this financial year.
A further update on Synlait’s year end financial forecast is expected when it announces its interim results on 27 March 2014.




I guess that by the end of year, the net profit would be over $40m, double than the previous forecast. haha ~ Bright Diary will get the license from Chinese government a month later. Chinese government issued 12 licenses so far, any company without license won't legally to sell milk products in China. If Bright Diary grants license next month, SML will benefit from less competitions in China.