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Synlait NZX : SML ASX : SM1 29 March 2021 Synlait publishes HY21 result Synlait Milk Limited ( Synlait ) today published its financial result for the six months ended 31 January 20211 : • Revenue up 19 % to $ 664.2 million EBITDA down 29 % to $ 47.7 million • NPAT down 76 % to $ 6.4 million • Consumer - packaged infant formula sales down 16 % to 18,085 MT • Lactoferrin production up 16 % to 13.6 MT • Dairyworks revenue $ 112.6 million Synlait Chair Graeme Milne commented : " Our first half was challenging , and we continue to find ourselves in a period of significant uncertainty and volatility as Synlait faces into several headwinds . This is impacting our short - term operations and will impact our full year 2021 financial result ( FY21 ) . " Synlait CEO Leon Clement commented : " We cannot control COVID - 19 but we can control our response . Our focus is now to mitigate the impact COVID - 19 has had on our customers , as we manage costs and capacity and pull forward value creation initiatives to accelerate the execution of our strategy . " " We will need time to get through this , but we remain confident about our future . Our investment phase is complete . We have the capacity , capability , and customer base to generate significant value . COVID - 19 hit us late , but we will emerge from the pandemic a stronger , more sustainable Synlait . " Despite the short - term challenges , the fundamentals of our purpose , ambition and strategy remain the same , and the opportunities ahead are exciting . Our team is mobilising around new opportunities that generate growth , value , and efficiencies . " FY21 guidance update As signalled earlier this month , Synlait is continuing to experience significant uncertainty and volatility within its business . This is due to : • • • Ongoing uncertainty in The a2 Milk Company's expected demand for the remainder of FY21 and FY22 . Synlait does not currently have sufficient confidence to forecast when this recovery will occur . The resulting impact of this on Synlait's business is two - fold : demand for consumer- packaged infant formula remains uncertain , which in turn impacts forward infant base powder production and asset use . Synlait's ingredients business . The sudden drop in consumer - packaged infant formula demand , combined with rapidly rising Global Dairy Trade prices , foreign exchange , and a changing product mix , creates volatility which limits returns . Our expectation is that global shipping delays will continue and further impact the FY21 result . 1 Comparisons are for the six months ended 31 January 2020 ( HY20 ) unless stated otherwise . Synlait Milk Limited 1028 Heslerton Road , RD13 Rakaia , Canterbury , New Zealand +643 373 3000 · www.synlait.com