The dairy product manufacturer increased revenue by 39% to $759 million in the year ended July 31 and after-tax profit rose 11% to $38.2m.
The results were achieved alongside significant investment on initiatives for future growth, chairman Graeme Milne said.
“We will continue to grow both top and bottom lines at pace.”
Demand for higher-margin products continued to rise and pre-tax margins were $10m ahead of the previous year.
Synlait made the A2 Platinum infant formula, which was driving the A2 Milk Company to record earnings. It also supplied several international category-leading dairy product businesses.
Milne said Synlait had considerable opportunities to solidify its ingredient and infant formula positions and to enter new categories.
Despite the strong profit improvement, managing director John Penno said the year was one of consolidation ahead of an expected period of solid growth.
Finished infant formula volumes increased by 17% to 18,776 tonnes and the work done over the year should lead to that rising to 30,000t to 35,000t of canned volumes this year.
Synlait would commission its new blending and consumer packaging facility in Auckland next month and it would underpin expansion of the infant formula business, Penno said.
It had already put on a fourth shift at its Dunsandel plant in Canterbury, providing production round the clock.
The wetmix capacity at Dunsandel was also being doubled, removing any capacity constraints in the second half of the year.
Penno said both Synlait and A2 were confident the required new registration of A2 Platinum in China would be achieved before January 1. Synlait was also excited about its Grass Fed-brand infant formula for Munchkin in the United States, for which it was also awaiting registration.
Synlait raised $97m in a big share issue to shareholders last September and that combined with strong cashflows led to group borrowings being reduced to $83m at balance date from $214m previously.
Operating cashflow was $115m, up from $104m. Borrowings funded just 11% of total assets at balance date.
Penno said Synlait’s 2017-18 season milk price forecast remained at $6.50/kg MS, up from the latest season’s average of $6.30/kg MS, made up of a base $6.16 and average value-add premium of 14c/kg MS.
