New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Synlait Milk (SML) has released a disappointing 1H23 result with reported NPAT of NZ$4.8m, versus our forecast of NZ$5.5m.</li><li>Gross profit was higher than expected (strong Ingredients margins and solid Consumer performance more than offsetting weak Advanced Nutrition margins), while interest costs and opex were also materially higher.</li><li>Net debt remains very elevated at NZ$517m (versus NZ$340m at FY22 and NZ$389m at 1H22) and was well ahead of our expectations.</li></ul>

Synlait Milk (SML) has released a disappointing 1H23 result with reported NPAT of NZ$4.8m, versus our forecast of NZ$5.5m.Gross profit was higher than expected (strong Ingredients margins and solid Consumer performance more than offsetting weak Advanced Nutrition margins), while interest costs and opex were also materially higher.Net debt remains very elevated at NZ$517m (versus NZ$340m at FY22 and NZ$389m at 1H22) and was well ahead of our expectations.

Synlait Milk (SML): 1H23 Result – Initial Impressions