Synlait, the New Zealand-based dairy company, has reported record profits of NZ$40.7m (€24m) for the first half of its 2018 financial year – a fourfold increase compared to last year. The company said it achieved this strong profit growth after pushing more milk into the manufacture of higher margin infant formula products.

Synlait said it manufactured close to 17,000t of finished infant formula in the six-month period, which is almost three times higher than last year.

The company is forecasting infant formula manufacture for the second half of the year to be in the region of 18,000t, bringing full-year production close to 35,000t.

Synlait said it manufactured just under 45,000t of lower-margin ingredients and powders for the first six months of the year, which was down 20% compared to last year.

“The growth trajectory of canned infant formula has continued with total consumer packaged volumes almost tripling from the same period last year and up 36% on the second half of last year,” said Dr John Penno, chief executive of Synlait.

The company recorded a 52% increase in first half sales to NZ$439m (€258m), while pre-tax profits almost tripled to reach NZ$57m (€33m). Earnings (EBITDA) for the period tripled to NZ$61m (€36m), as profit margins widened from 7.6% to a very strong 13.9%.

Based in the Canterbury region of the south island, Synlait is supplied with 65m kgs of milk solids every year from about 200 farmer suppliers contracted to the company.

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