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Synlait Milk CEO Grant Watson has stepped down after steering the New Zealand-based dairy and infant-formula business through a tumultuous 12 months.
A reason was not provided today (21 October) for Watson’s departure, with chairman George Adams only saying he is taking a break “before deciding his next career move”.
As a search commences to replace Watson, who has helmed New Zealand- and Australia-listed Synlait since January 2022, Tim Carter will step in as interim CEO. Carter heads the Dairyworks subsidiary where Aaron Kenny will assume that role on a temporary basis.
Synlait announced this month it had finalised a NZ$218m ($132.1m today) equity raise to buffer its financial position having taken a NZ$130m bailout loan earlier in the year from its largest shareholder, China’s Bright Dairy.
Watson also recently completed a debt restructuring with creditors and settled a long-running contractual and pricing dispute with its second-largest shareholder, The A2 Milk Co.
Bright Dairy now owns 65.3% of Synlait after taking part in the equity raise, while A2 Milk holds 19.8% after also contributing to the financing.
Watson said in a statement: “Synlait is an amazing and agile company, which I have been honoured to lead. Working with our passionate employees and farmers who care deeply about Synlait’s success has been a privilege.”
The incoming CEO will still be tasked with returning Synlait to profitability and reducing debt.
Revenue for the year to 31 July inched up 2% to NZ$1.64bn but Synlait delivered an EBIT loss of NZ$182.7m versus a NZ$31m profit in the corresponding 12 months.
Net profit after tax was in the red to the tune of NZ$182.1m, compared to a loss of NZ$4.3m a year earlier.
The business also has NZ$551.6m of debt on its balance sheet, 33% more than in its previous fiscal year.
In today’s trading, Synlait’s share price closed the New Zealand session down 8% at NZ$0.40 and was 2.6% lower in Australia to close at 37 Australian cents.
Chairman Adams said today: “Recent months have seen a long list of urgent challenges for Synlait, and Grant ably led the team through them. His achievements are extensive and notably include our balance sheet's recent successful reset.”
"Synlait Milk CEO Grant Watson steps down after rocky 12 months" was originally created and published by Just Food, a GlobalData owned brand.
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