Synlait Milk Secures $50 Million to Address Manufacturing Costs

Synlait Milk, a New Zealand dairy processor, has temporarily raised its banking facility by $50 million to address financial strains due to previous manufacturing challenges. This new revolving credit facility is effective from November 14th and will last until the end of March. The company faced a one-off cost of $43.5 million due to issues at its Dunsandel site.

The company remains compliant with its banking covenants despite the need for increased working capital. Manufacturing issues have been largely resolved, but related costs continue to impact the fiscal year 2026. Synlait has adjusted its earnings forecasts and minimum EBITDA thresholds to manage these ongoing financial impacts.

A significant step towards financial recovery is expected with the completion of a $307 million asset sale, scheduled for April 1st next year. This sale has already been endorsed by Bright Dairy, Synlait's majority shareholder, ahead of their annual general meeting. The AGM will be the first for new CEO Richard Wyeth, who joined during the peak of the manufacturing difficulties.