Total consumer-packaged infant formula volumes nearly tripled compared to the same period last year, manging director John Penno said.
The after-tax profit for the six months ended January 31 was $40.7 million, up from $10.6m at the same time a year earlier.
Gross margins increased by $41.5m, leading to operating earnings (Ebitda) being 122% higher at $74.1m.
Synlait’s supply relationship with the A2 Milk Co is the key to earnings growth and the company has also renegotiated supply agreements with Chinese customers New Hope Nutritionals and Bright Dairy, which will lead to fourfold volume growth over five years from 2019.
Synlait lifted operating cashflow to $74.1m, from an outflow of $14.7m previously.
The first-half earnings are expected to make up the bigger part of full-year earnings, partly due to earlier sales of ingredients products and because of increased research and development commitments and business development spending.
The group has expansion plans at its Dunsandel plant and development projects in the North Island.
It will soon settle the purchase of a site at Pokeno for a major processing facility. All conditions for the sale have been settled, Penno said.
Revenues for the six-months were $439.3m, up from $288.7m a year earlier.
At balance date, Synlait had total assets of $854.6m, including shareholders’ funds of $434.7m and borrowings of $139m.
