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's (SML) 1H23 guidance for normalised NPAT to be below 1H22 (NZ$14.5m) appears to be a timing issue — it is not quite as the headline suggests</li><li>The positive is there is no change to key medium-term value drivers</li><li>The negative is SML's 1H23 ingredients and lactofferin volumes are well below our prior expectations, which is likely to drive a sequential net debt increase in 1H23 and keep gearing elevated (for now)</li></ul>

Synlait Milk's (SML) 1H23 guidance for normalised NPAT to be below 1H22 (NZ$14.5m) appears to be a timing issue — it is not quite as the headline suggestsThe positive is there is no change to key medium-term value driversThe negative is SML's 1H23 ingredients and lactofferin volumes are well below our prior expectations, which is likely to drive a sequential net debt increase in 1H23 and keep gearing elevated (for now)

Synlait Milk

Synlait Milk: Timing Is Everything?