Synlait Milk (NZ:SML) shares surged on Monday after the company reported a narrowed annual loss and unveiled plans to sell its North Island assets to global healthcare firm Abbott for about NZ$307 million (US$176.8 million).
The New Zealand-based dairy processor posted a net loss after tax of NZ$39.8 million for the year ended July 31, compared with a NZ$182.1 million loss a year earlier.
Underlying net profit came in at NZ$0.8 million, reversing last year’s NZ$60.4 million deficit, as stronger performance in its advanced nutrition, ingredients, and consumer units lifted margins.
The sale agreement, covering the Pokeno factory, blending and canning facilities, and warehousing operations, is expected to be completed by April 2026, subject to regulatory and shareholder approvals.
Synlait’s majority shareholder, Bright Dairy, has already committed to backing the deal, the company said, adding that proceeds will be used to slash debt.
Shares of the company surged as much as 21% to NZ$0.845 as of 00:00 GMT, reaching their highest level in nearly six months.
Synlait, which will now concentrate on its South Island operations, declined to provide FY26 earnings guidance, citing the scale of its strategic reset.
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