The Synlait Milk Ltd board has admitted it has fallen short on execution of strategy in the past and has appointed a new CEO as it pursues a revamped plan to “return to robust profitability”.
Grant Watson, who is currently CEO of dairy company Miraka, will take up the Synlait top executive role in January next year.
Prior to Miraka, Grant spent 10 years at Fonterra where he held several senior roles including Director of Global Foodservice, Acting Director of Sales Fonterra Brands New Zealand, Managing Director of Tip Top, and Director of Route and Foodservice Fonterra Brands New Zealand. Prior to Fonterra, Grant built his executive career at McDonalds New Zealand to become Chief Operating Officer. He has also held several governance and directorship roles for private and publicly listed companies.
Board chairman Graeme Milne, who has served 17 years with Synlait, had signalled his intention to retire by rotation at the company’s AGM in December. He will step down as Chair when Grant Watson starts as CEO but will stay on as an appointed Board Advisor for one year.
John Penno will be the new board Chair.
The key metrics in Synlait’s financial results for the 12 months ended 31 July 2021 are:
· Revenue up 5% to $1,367.3 million.
· EBITDA down 78% to $37.3 million.
· NPAT down 138% to ($28.5) million.
· Nutritionals sales down 35% to 34,362 MT.
· Ingredient sales up 29% to 125,914 MT.
· Dairyworks revenue was $229 million.
The total average milk payment for the 2020/2021 season is $7.82 per kgMS. This is made up of a base milk price of $7.55 per kgMS and $0.27 of incentives (including Lead With Pride™). This is the second highest milk price Synlait has paid and the company says this is a result of strong and consistent demand for dairy products, especially from Southeast Asia.
Strong demand continues for dairy and has resulted in our forecast milk price remaining at $8.00 per kgMS for the current 2021/2022 season.
More details and links to further documents, here.