The high New Zealand dollar is also a factor in the forecast being reduced to between $25 million and $30m for the year ending July 31, from the earlier figure of between $30m and $35m, chairman Graeme Milne said.
The new figure is still well above last year’s prospectus forecast of a $19.8m after tax profit, issued ahead of the listing on NZX.
Synlait Milk reported an after tax profit of $12.1m for the six months ended January 31, up from $6.8m in the corresponding period a year earlier, before its capital-raising and NZX listing.
Total sales were $284.9m, up from $176.4m, and higher margins were achieved.
Milk powder and cream products achieved strong earnings.
Though the infant formula and nutritionals targets were not met in the first-half, Synlait remained confident of meeting its long term objectives, managing director John Penno said.
Milk powder and cream product earnings would continue to outperform the prospectus projections.
Synlait had made good progress with its target first-tier, multi-national customers, he said.
It expected to be supplying infant formula and finished products to four of the six targeted groups during the 2015 financial year. That business was expected to account for up to 30% of total production. More milk supply had already been secured.
The company has also increased its expansion plans, adding another 25% capacity to a second infant formula and nutritionals spray drier than originally planned, with longer term plans for an eventual fourth large-scale spray drier.
Current projects, including a lactoferrin plant, drystore extension and new blending and canning plant would be commissioned this year on or close to their planned dates.
