Synlait Milk denies media speculation about merger discussions with A2 Milk and Fonterra amid financial struggles.
Synlait Milk has refuted reports suggesting it is engaged in takeover talks with The A2 Milk Company and Fonterra. The New Zealand-based dairy firm confirmed in a stock-exchange filing it is not involved in any such discussions, declining further comment. A2 Milk also dismissed the speculation, while Fonterra has not responded to inquiries.
The denial follows a challenging period for Synlait, which reported a first-half net loss of NZ$80.6m ($47.6m) in March, compared to a NZ$4.8m profit a year earlier. EBITDA turned negative at NZ$35m, down from a NZ$63m profit, and net debt surged 88% to NZ$472.1m. Revenue rose 3.5% to NZ$949m, but the company remains focused on a turnaround strategy after leadership changes and asset disposals.
Synlait’s largest shareholders, China’s Bright Dairy and A2 Milk, recently provided financial support as part of its recovery plan. The company aims to stabilize operations, simplify its business model, and scale effectively under interim leadership.