SML - Synlait Milk Ltd

[MAC]

https://www.nzx.com/files/attachments/200838.pdf

[winner69]

https://www.nzx.com/files/attachments/200838.pdf

What does Slide 26 actually lead to ......good or bad or just so so?

FY 2015 OUTLOOK - SYNLAIT
 Increased milk powder business committed to infant formula and nutritional market approaching 50% of total business.
 45% of business committed to four tier 1 customers.
 Forecasting 15MT of lactoferrin sales at prices in excess of
US$500,000 per MT.
 Overall expect a small increase in total volumes sold.
 Focus on executing build of dryer 3 and new administration and laboratory building.
 Announcing small investment in New Hope Nutritionals (25%) – akaraTM brand.
 Benefit of increased infant formula and nutritional sales largely balanced by increased operating and funding

[MAC]

A pretty much as per PFI expected earnings result really, no hint of a precise regulatory schedule,

Gross margins falling from 15.5% to 12.8%, unsurprising given the circumstance I guess,

“The lower infant formula margin together with the associated infant formula provisions and write-offs totalling $15.8 million primarily relate to manufactured infant formula inventories that were unable to be sold into the China market as a result of the Regulatory changes. Some of these inventories have expired and have since been sold as stock food, while the remainder have been provided to estimated net realisable values in order to sell this product.”

The outlook requires some brooding though in this context, some contemplation may be required in determining what “balanced” means;

“During FY2015 we will continue to invest in our growth initiatives, particularly D3. Improvements in returns through increased sales in the infant formula and nutritional markets will, however, be largely balanced by increased operating and funding costs. We are confident in our future outlook and look forward to continuing to work for shareholders during 2015.”

[Hawkeye]

http://www.nbr.co.nz/article/synlait...onal-bd-162759

[winner69]

What does Slide 26 actually lead to ......good or bad or just so so?

FY 2015 OUTLOOK - SYNLAIT
 Increased milk powder business committed to infant formula and nutritional market approaching 50% of total business.
 45% of business committed to four tier 1 customers.
 Forecasting 15MT of lactoferrin sales at prices in excess of
US$500,000 per MT.
 Overall expect a small increase in total volumes sold.
 Focus on executing build of dryer 3 and new administration and laboratory building.
 Announcing small investment in New Hope Nutritionals (25%) – akaraTM brand.
 Benefit of increased infant formula and nutritional sales largely balanced by increased operating and funding

Slide 26 of this presentation

https://www.nzx.com/files/attachments/200846.pdf

MAC - assume that this is what the brooding and contemplation is about

Haven't followed Synlait much so haven't caught on to the what the words they use really mean yet, ie still cant read between the lines.

[winner69]

One other question -

Slide 10 says "Included a one off product mix benefit estimated to be $24.5m"

Without that they would have been in a loss situation?

But did offset numerous other adverse impacts

But what does 'one off' mean? Like is a one off that won't be there in F15 (ie an adverse impact) or is a one off step up in margin performance to a new level that will be sustained (neutral in F15)

Seems hard to assess what is 'normal' in their financials.

[winner69]

Still looking through presentations etc

ROIC of about 7% implies not covering cost of capital yet

But trading at nearly 3 times book value

Implies heaps of future growth built into the current shareprice.

Will keep looking for the good bits in the reports and analyst stuff I have - after all it is a ****ty day outside but looking out the window and seeing a 9 metre swell breaking in over the rocks is quite cool

[K1W1G0LD]

Still looking through presentations etc

ROIC of about 7% implies not covering cost of capital yet

But trading at nearly 3 times book value

Implies heaps of future growth built into the current shareprice.

Will keep looking for the good bits in the reports and analyst stuff I have - after all it is a ****ty day outside but looking out the window and seeing a 9 metre swell breaking in over the rocks is quite cool

I see you've taken over the mantle from snoopy in the TA analysis winner......................a bit more negative emphasis though , well done??

[winner69]

I see you've taken over the mantle from snoopy in the TA analysis winner......................a bit more negative emphasis though , well done??

No problems. Just trying to find the good bits to give me where they are tracking.

Can you tell me what the words on that Slide 26 really mean?

What does it point to as a NPAT figure for F15?

That's what I trying to get to

[K1W1G0LD]

Sorry mate, I know FA about TA (excusemoi francais) why don't you ask the man himself , snoopy!!