Photo: RNZ
Shares of South Island dairy company Synlait are in a trading halt in light of new information which may affect its profit guidance.
The share market regulator NZ RegCo said Synlait requested a trading halt of its ordinary shares and quoted bonds, to give the company more time to assess the new information.
Further details about the information were not disclosed in this morning's announcement to the share market.
NZ RegCo said the new information may require Synlait to revise its previously issued profit guidance.
The trading halt comes after the company warned last month its full year profit [https://www.rnz.co.nz/news/business/486169/synlait-milk-dramatically-lowers-profit-forecast
would take a hit] from reduced demand, higher costs and supply chain disruptions.
Synlait, which is a key supplier to speciality dairy company A2 Milk, forecast an after-tax profit of between $15 million and $25m, well below last year's $38.5m.
It was a big change from Synlait's previous guidance issued last December.
At the time, the company reaffirmed its expectation of ending the year with a "similar level of profitability experienced before FY21", which had been a net profit of $75.2m.
After last month's guidance downgrade, Synlait chief executive Grant Watson said it was taking longer than expected to restore the company's finances after pandemic disruptions and the problems of its major customer, A2 Milk.