Directors and execs depart

It's also the latest in a string of executive and director resignations in recent weeks, with independent director Paulk McGilvary resigning earlier this week.

Last month Chief Quality Officer Hila Mory resigned, and Chief Supply Chain and Technology Officer Robert Stowell also resigned in early April.

Turnaround story?

Synlait in March released a letter to its shareholders saying it had been "another period of challenge" for the company.

The company acknowledged that shareholders would find the company's performance "frustratingly disappointing".

The company added:

The result reflects a period where Synlait faced multiple headwinds with little choice as to how to deal with them. At every stage we carefully analysed, costed and weighed up our options. Even with the benefit of hindsight, there is little we could have done differently that would have improved this result. Suffice to say building optionality into the business is a critical focus for our recovery.

For the first half ending January 31, Synlait posted a net loss of NZ$80.6 million, compared with a net profit of NZ$4.8 million for the previous corresponding period, on revenue of NZ$777.5 million, down from NZ$779 million.

In a joint statement at the time of the results release Mr Wyeth said the company was focused on six main levers to turn the company around.

He has now resigned, however will remain with the company until 30 June "to support an orderly transition and handover".

Current board director Leon Fung will take over as acting chief executive while a new leader for the company is found.

Recall flagged

Synlait said earlier this month it was assisting The a2 Milk Company Ltd (ASX: A2M) with its voluntary recall of batches of a2 Platinum USA infant milk formula due to the presence of cereulide.

Synlait said it had manufactured the product in compliance with relevant standards at the time.

The company added:

The recall was initiated after cereulide was detected through additional testing that was undertaken after new directives from New Zealand's Ministry for Primary Industries. The product was discontinued prior to the recall.  

Synlait also this month said it had received two waivers in relation to its syndicated banking facilities.   

The company had asked for its financiers to waive the quarterly minimum EBITDA "event of review threshold" and waive its interest cover ratio for the April 30 test date.

Synlait Milk shares closed at 38.5 cents on Wednesday afternoon. The company is valued at $232.2 million.

The post Synlait Milk CEO resigns – the latest in a line of executive departures appeared first on The Motley Fool Australia.

Following the announcement, the team at Bell Potter lowered their outlook on the company. 

What did Synlait Milk Report?

Synlait Milk is a dairy processing company that benefits from a differentiated milk supply and operating environment in New Zealand.

Its share price is down over 26% year to date and almost 50% over the last 12 months.

Yesterday, the company released half-year results for the six months ended 31 January 2026.

Key results included: 

• A reported EBITDA loss of ($34.7 million), with underlying EBITDA of $4.1 million.
• A reported net loss after tax of ($80.6 million), with an underlying net loss after tax of ($27.3 million).
• Net debt of $472.1 million – an increase of 88%.
• Revenue of $949 million – an increase of $32.3 million.
• Gross profit of $3.1 million – a decrease of $83.9 million.

CEO Richard Wyeth said: 

The numbers we are presenting today are frustratingly disappointing. They are the result of a period where Synlait faced multiple headwinds and had little choice as to how to deal with them. They reflect a severe lack of optionality, not effort, and they do not define the company's future – although recovery will take time.

What did Bell Potter have to say?

Following these results, the team at Bell Potter released updated guidance on this ASX consumer staples stock. 

Bell Potter said an unfavourable product mix in ingredients, operational plant issues, and lower IMF margins (on production catch-up plan) were drivers of the weaker result.

The broker said FY26e appears a write-off for the consumer staples stock as it bears the impact of material disruptions in its nutrition operations and unfavourable product mix in its ingredients business.

FY27e is likely to also be a year of transition as SM1 looks to fill the void created by loss of A2M EL volumes, with progress being made on based powder (i.e. Abbott contract) and packaged products (white label offerings and new customer acquisition).

Price target decrease

Included in the report was a retained hold recommendation. 

However, the broker lowered its price target to $0.42. 

This was a significant decline from its previous target of $0.72. 

The consumer staples stock closed trading yesterday at $0.41, indicating it is close to fair value. 

To a degree a material bounce back in performance is somewhat assumed, with SM1 trading at 10.5x FY27e EBITDA.

The post Why did Bell Potter just lower its outlook for this consumer staples stock? appeared first on The Motley Fool Australia.

The company said in a statement to the ASX on Wednesday morning that while manufacturing challenges at its Dunsandel operations had been largely resolved, "Synlait continues to face related cost and operational impacts''.

The company went on to say:

The need to rebuild inventory across product segments required significant adjustments to Synlait's manufacturing plans this dairy season, relative to a normal year. To enable these adjustments, additional raw milk sales were made during HY26, which weighed heavily on margins and operating costs.

Synlait said its first-half performance had also been impacted by lower relative returns from its commodities portfolio.

The company was also taking a "conservative approach" and not recognising further deferred tax assets "arising from unused tax losses beyond those recorded at 31 July 2025''.

Bottom line to plunge into the red

The company said that, given the impacts referred to above, it expected the first half underlying EBITDA to be between break-even at $5 million and a reported EBITDA loss of $28 to $33 million.

It also expected an underlying net loss of $33 to $38 million and a reported net loss after tax of $77 to $82 million.

For the same period last year, the company reported a net profit of $4.8 million.

The company said it had lodged an insurance claim to recoup losses as a result of its manufacturing challenges, and while the claim had been accepted, "the final amount and timing of reimbursement remain subject to further assessment and settlement processes''.

Synlait Chief Executive Officer Richard Wyeth said regarding the expected result:

We are very disappointed with the six-month result and the impact it has had on the pace of our financial turnaround. However, we have made progress with real momentum in our operations, a renewed Canterbury-based executive leadership team, and the North Island sale set to fundamentally strengthen Synlait. Our strategy is being reset, and we are confident it will provide a pathway to return Synlait to success, although this will take at least 12 months.

The company said the sale of the North Island assets was due for completion on April 1, with the proceeds to be used to "significantly reduce debt''.

The company added:

The sale will enable Synlait to centre its core operations on Canterbury, with renewed focus on delivering continuous operational excellence and customer diversification to support longer-term profitability, however, it is clear the company's recovery will take time.

Synlait shares were 5.8% lower at 49 cents in early trade.

The company was valued at $313.7 million at the close of trade on Tuesday.

Synlait will report its full-year results on March 23.

The post Why are Synlait Milk shares falling today? appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

Aeris Resources Ltd (ASX: AIS)

The Aeris Resources share price is up 2.5% to 48.7 cents. This follows the release of the copper miner's update on activities at the Golden Plateau deposit. It is located within the company's 100% owned Cracow tenement package in Queensland. Management notes that a large volume of mineralisation has been identified around the historical underground workings, extending down to 150m below the bottom of the existing pit. Executive Chairman, Andre Labuschagne, said "The historical production from the Golden Plateau area highlights the significance of this mineralised system. We are highly encouraged by the potential impact this near-term ore source could have on extending the Cracow life-of-mine plan. Aeris is prioritising exploration at Golden Plateau with the drill program to be completed this financial year."

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is up 12% to $9.39. This has been driven by the release of a sales update from the defence and space company today. EOS revealed that it is expecting its full year revenue from existing contracts to be $115 million to $125 million in FY 2025. However, it is pursuing orders that could boost this number by $25 million. In addition, its contract backlog is approximately $299 million. This is $163 million higher than it was at 31 December 2024 and it still has an extensive pipeline of sales opportunities.

Novonix Ltd (ASX: NVX)

The Novonix share price is up 16.5% to 49.5 cents. Investors have been buying this battery materials and technology company's shares after it achieved a critical milestone. Novonix announced that it has delivered its first mass production, commercial-grade sample of synthetic graphite for industrial applications. It notes that this delivery has been made to one of North America's largest value-added carbon processors with a global market reach. Novonix's CEO, Mike O'Kronley, said: "We're pleased to have hit this significant manufacturing milestone. This demonstrates that industrial-grade products can be produced using NOVONIX's proprietary continuous graphitization furnace technology at a mass production scale and is another step towards bringing our battery-grade materials to market."

Synlait Milk Ltd (ASX: SM1)

The Synlait Milk share price is up 15% to 72 cents. This follows the release of the dairy processor's full year results this morning. The company revealed the more than doubling of its underlying EBITDA to NZ$107.2 million in FY 2025. In addition, Synlait Milk has signed an agreement to sell its North Island assets to global healthcare leader Abbott Laboratories (NYSE: ABT). The divestment will deliver the company approximately NZ$307 million in proceeds.

The post Why Aeris Resources, EOS, Novonix, and Synlait Milk shares are charging higher today appeared first on The Motley Fool Australia.

Shares in the New Zealand-based dairy processing company closed on Friday trading for 62.5 cents. In morning trade on Monday, shares are changing hands for 74.0 apiece, up 18.4%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.4% at this same time.

Here's what's grabbing ASX investor interest.

Synlait Milk share price rockets on divestment news

The Synlait Milk share price is surging following the release of the company's full-year FY 2025 results and a major divestment announcement.

First, turning to the divestment, Synlait said it has entered into a binding conditional agreement to sell its North Island assets to Abbott, a global healthcare provider that has been a customer of Synlait since 2020.

The divestment is estimated to deliver around NZ$307 million (AU$270.2 million) to the company.

Synlait chairman George Adams said the major asset sale is a "defining moment" for the ASX dairy stock.

"The sale will strengthen the company's financial position, with the proceeds used to significantly reduce debt," he said.

Adams added:

We are equally pleased Abbott will onboard the vast majority of our people who work in these assets at completion – that is a great outcome. This valuable reset presents Synlait with a rich opportunity to move beyond crises to planning a real and vibrant future.

"The North Island sale is a much-needed step change for Synlait," CEO Richard Wyeth said of the divestment that's sending the Synlait Milk share price soaring today.

Wyeth noted:

In short, this sale will deliver a stronger, simpler, and more secure Synlait. It enables us to, in time, explore opportunities to diversify what we do and better enable Synlait to reach its full potential.

Synlait said that its majority shareholder, Bright Dairy Holding Limited, which owns 65.25% of the company, has said it will vote in favour of the divestment. So, the shareholder approval condition already looks to be locked in.

The Synlait board said it fully supports the North Island sale and recommends shareholders vote in favour.

Synlait is aiming to complete the sale by 1 April.

What else is happening with the ASX dairy share?

Atop the major divestment news, the Synlait Milk share price is also under scrutiny following the release of the company's FY 2025 results covering the 12 months to 31 July.

Highlights include a NZ$54.8 million year-on-year increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) to NZ$50.7 million. Underlying EBITDA of NZ$107.2 million was up by NZ$62.0 million.

Net debt came down 55% from FY 2024 to NZ$250.7 million, while operating cash flow of NZ$165.5 million surged 451%. Revenue of NZ$1.8 billion was up 12%.

On the bottom line, the statutory loss of NZ$39.8 million represented a NZ$143.3 million improvement from FY 2024. On an underlying basis, Synlait reported a net profit after tax of NZ$800,000, up NZ$62.1 million year on year.

Commenting on the results, Wyeth said:

The numbers we are presenting today reflect the impact of manufacturing challenges at Dunsandel. These issues, which are now largely behind us, were complex and impacted our ability to continually deliver product on time, in spec, and at scale.

With today's big intraday lift factored in, the Synlait Milk share price is up 95% since this time last year.

The post Synlait Milk share price leaping 18% today on $270 million news appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are starting the week deep in the red:

Antipa Minerals Ltd (ASX: AZY)

The Antipa Minerals share price is down 13% to 59.5 cents. This morning, this copper and gold explorer completed a strongly supported institutional placement to raise $40 million before costs. These funds were raised through the issue of approximately 66.7 million shares at a 12.4% discount of 60 cents per new share. The company's managing director, Roger Mason, commented: "This successful equity raise provides the financial flexibility and certainty required to unlock the full value of the Minyari Development."

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 7% to $17.08. Investors have been selling this gold miner's shares following the release of an operational update this morning. Northern Star revealed that its sales for FY 2025 will be at the low end of its revised guidance range. FY 2025 gold sold came in at 1,634k ounces, which compares to its revised guidance range of 1,630k ounces to 1,660k ounces. Looking ahead, management is guiding to 1,700k ounces to 1,850k ounces of gold sold in FY 2026. However, it warned that the first quarter of FY 2026 would be the softest and would be run-rating below guidance.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down over 4% to $1.45. This is despite there being no news out of the lithium miner today. However, it is worth noting that almost all lithium shares are falling today. A number of analysts believe that lithium prices are going to stay lower for longer due to increased supply out of Africa.

Synlait Milk Ltd (ASX: SM1)

The Synlait Milk share price is down 8% to 52 cents. Investors have been selling this dairy processor's shares after it announced the exit of its chief operating officer (COO), Paul Mallard. The company's CEO, Richard Wyeth, commented: "Paul has led multiple business functions and played a significant role in advancing the company's operational and strategic priorities. Under his leadership, the team has made notable progress optimising the North Island network and enhancing the overall value chain performance."

The post Why Antipa Minerals, Northern Star, Pilbara Minerals, and Synlait Milk shares are falling today appeared first on The Motley Fool Australia.

The outperforming company in question is New Zealand-based dairy processing company Synlait Milk Ltd (ASX: SM1).

Synlait Milk shares closed yesterday trading for 66.5 cents. In earlier trade, shares leapt to 74.5 cents, up 12.0%. After some likely profit-taking, shares are trading for 71.5 cents apiece at the time of writing, up 7.5%.

Here's why Synlait Milk is shaking off today's broader Trump tariff-fuelled market sell-off.

ASX All Ords share leaps on supply update

The Synlait Milk share price is charging higher today after the ASX All Ords share announced material progress in its strategic workstream to secure its future milk supply.

Synlait said that the "significant majority" of the cease notices it was previously issued have now been withdrawn.

Cease notices occur when a dairy farmer indicates their intent to end a milk supply agreement with a processing company like Synlait. And investors have been concerned that the company's milk supplies could run short.

"In the days after we presented our half year result there was a positive uplift in cease withdrawal numbers," acting CEO Tim Carter said.

"Our farmers are the backbone of Synlait, their support provides us with valuable certainty and reflects growing confidence in the company on the back of our return to profitability," he added.

As for those dairy farmers who still have outstanding cease notices, Synlait said they can still qualify for a "one-off additional $0.20c/kgMS premium" if they withdraw those ceases by 31 May.

Looking to what's ahead for the ASX All Ords share and likely stoking investor interest today, Carter said, "The huge progress our Milk Supply Team has already made, along with a higher than-expected level of inquiries from new farmers wanting to supply Synlait, means we have sufficient milk volumes for FY 2026 and FY 2027."

Carter added:

With competition for milk growing in Canterbury, Synlait is committed to continuing to show farmers why we should remain a processor of choice. In the meantime, we are extending a heartfelt thank you to all of our farmers for the support and certainty they have delivered to our company.

When did Synlait Milk return to profitability?

Synlait Milk returned to profitable operations in the half year ending 31 January.

The ASX All Ords share reported a 16% year-on-year increase in revenue to NZ$916.8 million. And net profit after tax (NPAT) came in at $4.8 million, up 105%.

Synlait Milk shares are up 80% in 2025.

The post Guess which ASX All Ords share just rocketed 12% in today's crashing market? appeared first on The Motley Fool Australia.

Four ASX shares that have not let that hold them back are listed below. Here's why they are rising:

Astral Resources NL (ASX: AAR)

The Astral Resources share price is up 6% to 17.5 cents. This follows the release of a mineral resource estimate update from the gold explorer. According to the release, Astral's mineral resource at the 100%-owned Mandilla Gold Project 70km south of Kalgoorlie in Western Australia has increased 49%. Management notes that this will underpin the pre-feasibility study, which is due to be finalised in the June 2025 quarter. Managing Director Marc Ducler said: "Our strategy has been highly successful, with this updated 2025 MRE recording an increase in the Mandilla Indicated Mineral Resource of 49% to 1.03Moz. These ounces will form the backbone of our ongoing PFS, with additional contribution from the Kamperman and Think Big deposits at Feysville."

Newmont Corporation (ASX: NEM)

The Newmont Corporation share price is up 2.5% to $78.07. Investors have been buying gold miners today after the price of the precious metal neared a record high following the announcement of tariffs from US President Donald Trump. The S&P/ASX All Ords Gold index is up 1.2% at the time of writing.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius Resources share price is up 4.5% to $2.40. This has been driven by the release of a quarterly update from the gold miner this morning. Although Ramelius revealed a small quarter on quarter decline in gold production, it still delivered record underlying free cash flow of $223 million for the three months. Managing Director, Mark Zeptner, said: "The March 2025 Quarter has delivered our second consecutive record underlying free cash flow, finishing the Quarter with over $657 million in cash and bullion. The operations team continues to maximise cash flows from our existing operations in this elevated gold price environment."

Synlait Milk Ltd (ASX: SM1)

The Synlait share price is up 3% to 68.5 cents. This morning, this dairy processor announced that its strategic workstream to secure its future milk supply has passed a major milestone. Synlait advised that the significant majority of the cease notices issued to the company have now been withdrawn. Acting CEO, Tim Carter, commented: "In the days after we presented our half year result, there was a positive uplift in cease withdrawal numbers. Our farmers are the backbone of Synlait, their support provides us with valuable certainty and reflects growing confidence in the company on the back of our return to profitability."

The post Why Astral, Newmont, Ramelius, and Synlait shares are defying the market selloff and rising appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Helia Group Ltd (ASX: HLI)

The Helia Group share price is down 27% to $3.55. Investors have been selling this lenders mortgage insurance (LMI) provider's shares after it conceded that it is likely to have lost its major contract with Commonwealth Bank of Australia (ASX: CBA). The company notes that the LMI business underwritten under this contract represented approximately 44% of gross written premium (GWP) in FY 2024. CEO and managing director, Ms Pauline Blight-Johnston, said: "Together, CBA and Helia have helped hundreds of thousands of Australians to buy homes over the last 50 years. Given our longstanding and successful relationship with CBA, we are disappointed in this development. We would have welcomed the opportunity to continue our partnership."

James Hardie Industries plc (ASX: JHX)

The James Hardie Industries share price is down 12% to $41.00. This morning, this building materials giant announced an agreement to acquire The AZEK Company Inc. (NYSE: AZEK) in a deal valued at US$8.75 billion (A$14 billion), including AZEK's net debt. Management has spoken very positively about the transaction, but it seems that the market doesn't agree. CEO Aaron Erter said: "We are uniting two highly complementary companies with large material conversion opportunities and shared cultures centered around providing winning solutions to our customers and contractors. Together, we will be well positioned to drive sustained above market growth as a leader across attractive categories for the exterior of the home."

New Hope Corporation Ltd (ASX: NHC)

The New Hope share price is down 6% to $3.86. This has been driven by the coal miner's shares going ex-dividend this morning. Last week, New Hope released its half year results and declared a fully franked 19 cents per share interim dividend. This equates to a sizeable 4.1% dividend yield based on its last close price. Eligible shareholders can now look forward to receiving this next month on 9 April.

Synlait Milk Ltd (ASX: SM1)

The Synlait Milk share price is down 9% to 83 cents. This follows the release of the dairy processor's half year results. Synlait posted EBITDA of NZ$63.1 million for the half, just above its the guidance range. It also reported a net profit after tax of NZ$4.8 million. Looking ahead, management warned that "financial progress made in the second half of FY25 will be slower than the first half."

The post Why Helia, James Hardie, New Hope, and Synlait shares are sinking today appeared first on The Motley Fool Australia.

Every one of the 11 market sectors recorded gains over the week, with consumer staples the strongest cohort, up 3.9%.

Last week's recovery followed four weeks of falls that left the ASX 200 on the brink of an official market correction.

A correction is defined as a 10% fall from the most recent peak.

The benchmark index fell 9.43% from its record closing high on 14 February to what appears to have been the trough on 13 March.

Global markets fell over the month as concerns rose about US tariffs potentially creating a trade war and sending the US into recession.

Last Thursday, the US Federal Reserve's decision to keep interest rates on hold at 4.25% to 4.5% seemed to lift market sentiment.

In Australia, the news prompted the largest rally in ASX 200 shares in nine weeks.

Investors were also comforted by US Fed Chair Jerome Powell stating that historically, inflation created by tariffs can be "transitory".

Judging by the strength of the market rebound, it appears many ASX 200 investors were prompted to buy the dip last week.

There were plenty of good options, with several ASX 200 blue-chip shares trading at multi-year lows following the sell-off.

And here's a fun fact for you: Did you know that one market sector actually gained value during the sell-off?

Let's recap the week.

ASX consumer staples shares lead the recovery

Let's start our coverage of the ASX 200 consumer staples sector with the supermarket shares.

Last week, the sector's biggest stock, Woolworths Group Ltd (ASX: WOW), ripped 7.6% higher to finish at $29.93 per share on Friday.

The Coles Group Ltd (ASX: COL) share price lifted 4.51% to close at $19.46.

Shares in IGA network owner Metcash Ltd (ASX: MTS) rose 4.93% to $3.19 per share on Friday.

Looking at some ASX 200 food and milk shares now…

Bega Cheese Ltd (ASX: BGA) shares rose 4.4% to $5.24 per share.

Shares in poultry producer Inghams Group Ltd (ASX: ING) lifted 0.3% to $3.12 per share.

Synlait Milk Ltd (ASX: SM1) shares rose 7.7% to 92 cents, while A2 Milk Company Ltd (ASX: A2M) sank 7.1% to $8.13.

Shares in olive oil producer Cobram Estate Olives Ltd (ASX: CBO) fell 1.8% to $1.89 apiece.

Onto the ASX 200 wine shares and alcohol retailers…

The Treasury Wine Estates Ltd (ASX: TWE) share price slipped 1.3% to finish the week at $9.95.

Shares in BWS and Dan Murphy's owner Endeavour Group Ltd (ASX: EDV) fell 2.4% to $4.02.

Among the ASX 200 agricultural shares…

The Graincorp Ltd (ASX: GNC) share price rose 2.5% to finish the week at $7.02.

Shares in stock feed producer Ridley Corporation Ltd (ASX: RIC) lifted 2.8% to $2.56 per share.

The Elders Ltd (ASX: ELD) share price lost 2.7% to close at $6.89 on Friday.

The Australian Agricultural Company Ltd (ASX: AAC) share price fell 4.2% to $1.48.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 rebounds as investors seek bargains following market sell-off appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are charging higher:

Alpha HPA Ltd (ASX: A4N)

The Alpha HPA share price 5.5% to 89.7 cents. This morning, the High Purity Alumina (HPA) producer released an update on its semiconductor sector marketing activities. Management notes that these activities are positively impacting both Stage 1 and Stage 2 of the HPA First Project in Gladstone, Queensland. Managing Director, Rob Williamson, said: "The semiconductor sector is a key focus for the Commercial team, with attractive pricing and demand pull from significant AI data centre growth and power electronics. Alpha's technology is enabling our products to outperform in both the CMP slurry and thermal interface packaging applications, which is leading to the recent Letters of Intent we are seeing coming from this space."

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price is up 3.5% to $5.41. This appears to have been driven by a positive reaction to the retailer's half year results from brokers. One of those was Macquarie, which has responded to the results by retaining its outperform rating and lifting its price target to $5.50. Elsewhere, the team at Citi has retained its buy rating on Harvey Norman's shares with an improved price target of $5.80.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price is up 4.5% to $264.93. Investors have been buying the health imaging technology company's shares following the announcement of another big contract win. Pro Medicus has signed a $40 million, seven-year contract with LucidHealth. It is a leading provider of radiology services in the US. The company's CEO, Dr Sam Hupert, said: "LucidHealth joins our rapidly growing list of private practice clients. Their needs, which include subspecialized onsite and remote reading/ teleradiology capabilities, are uniquely catered for by our proprietary server-side streaming technology reinforcing our view that Visage 7 is ideally positioned to address this market and the other key market segments we service, which include academic medical centers, IDNs and outpatient clinics."

Synlait Milk Ltd (ASX: SM1)

The Synlait Milk share price is up 5% to 81.5 cents. This morning, the dairy processor announced that it has appointed its new CEO. Synlait Milk has appointed Richard Wyeth as its new leader. The company notes that he is a "seasoned, tested, and highly regarded CEO in New Zealand's dairy industry." He was previously CEO of both Westland Milk Products and Taupo-based dairy company Miraka.

The post Why Alpha HPA, Harvey Norman, Pro Medicus, and Synlait Milk shares are charging higher today appeared first on The Motley Fool Australia.

The soaring stock in question is Synlait Milk Ltd (ASX: SM1).

Shares in the New Zealand-based dairy processing company closed yesterday at 35.5 cents. In earlier trade, shares just leapt to 47.0 cents, up 32.4%. After some likely profit-taking, they are currently swapping hands for 44.0 cents apiece, up 23.9%.

As you can see on the chart above though, shares remain down 44% since this time last year.

Here's what's spurring renewed investor interest in the ASX share today.

ASX share leaps on strong guidance

The Synlait Milk share price is soaring after the company released financial guidance for the six months ending 31 January (H1 FY 2025).

The ASX share said its business recovery plan was on track and announced a further financial commitment to secure its milk supply.

Synlait expects half-year earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be in the range of $58 million to $63 million.

The company attributed its return to profitability to:

• New business development driving growth in advanced nutrition products
• Strong performance of its ingredients business driven by improved management of foreign exchange and an optimised product mix
• Continued cost control, driven by reduced consultancy spend, headcount reductions, and improved optimisation for the North Island assets

The ASX share also looks to be catching some tailwinds after the company announced additional financial commitments to retain and grow its milk supply in the South Island.

Synlait said it was "enhancing its financial package" to all South Island dairy farmers committed to a future with the company.

What did management say?

Commenting on the progress sending the ASX share soaring today, Synlait Milk acting CEO Tim Carter said, "The Synlait team has worked extremely hard to lift productivity and performance in the past six months."

Carter added:

Today's announcement demonstrates the huge progress being made and, while we cannot take our foot off the pedal, we are pleased to announce we expect to return to profitability at our upcoming half-year result.

Farmers are an important backbone to our business. To further recognise that, we have increased our commitment to existing and new South Island suppliers with additional premiums in place for each of the following three seasons. We are confident this will secure our milk supply which is critical to our future.

The ASX share is scheduled to release its H1 FY 2025 results on 24 March.

The post Guess which ASX share just rocketed 32% on return to profitability appeared first on The Motley Fool Australia.

Consumer staples lifted by 0.08%, and materials shares rose by 0.01% over the five trading days.

Meantime, the S&P/ASX 200 Index (ASX: XJO) lost 0.99% to finish the week at 8,296 points.

Technology dragged the index down, with the sector falling by a hefty 5.73% after weeks of big gains.

Historically, December is usually a strong month for shares, but this has not been the case in 2024 so far.

The month started well, with the ASX 200 resetting its record high on 3 December at 8,514.5 points.

The benchmark has since fallen 2.34%.

Overall, the ASX 200 has dipped by 1.66% in December so far after a very strong 3.38% gain in November.

A surprisingly strong labour report released on Thursday contributed to the market's poor performance last week. The unemployment rate fell in November, stoking fears of sticky inflation and delayed interest rate cuts.

Let's review what happened last week.

Consumer staple shares led the ASX sectors last week

First to the ASX supermarket shares.

The sector's largest stock, Woolworths Group Ltd (ASX: WOW), gained 0.46% to finish at $30.42 per share on Friday.

The Coles Group Ltd (ASX: COL) share price lost 1.37% to close at $18.70.

IGA network owner Metcash Ltd (ASX: MTS) tumbled 3.73% to close at $3.23 per share.

Among the ASX 200 wine shares, Treasury Wine Estates Ltd (ASX: TWE) lifted 1.78% to $11.74.

Endeavour Group Ltd (ASX: EDV) shares fell 1.05% to $4.26.

A2 Milk Company Ltd (ASX: A2M) fell 1.64% to $5.71 last week.

Synlait Milk Ltd (ASX: SM1) shares were steady at 37 cents by the close on Friday.

ASX 200 agricultural share Graincorp Ltd (ASX: GNC) fell 3.25% to finish the week at $7.44.

The Elders Ltd (ASX: ELD) share price rose by 0.6% to $7.56.

Inghams Group Ltd (ASX: ING) lifted 1.61% to $3.16 per share.

Bega Cheese Ltd (ASX: BGA) rose by 0.95% to $5.30 per share.

Stock feed producer Ridley Corporation Ltd (ASX: RIC) declined 3.27% to $2.66 per share.

Cobram Estate Olives Ltd (ASX: CBO) shares fell 0.5% to $2 apiece.

The Australian Agricultural Company Ltd (ASX: AAC) share price rose 0.36% to $1.39.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post Here's how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.

Meantime, the S&P/ASX 200 Index (ASX: XJO) lost 1.64% to finish the week at 8,211.3 points.

A significant sell-off on Wall Street led to weaker trading on the Australian market last week. As we reported, rising US bond yields stoked fears of resurgent inflation and unsettled global markets.

Let's review what happened.

Consumer staple shares led the ASX sectors last week

The biggest ASX consumer staple share, Woolworths Group Ltd (ASX: WOW), lost 0.58% to close at $32.69 on Friday. The Coles Group Ltd (ASX: COL) share price lifted 1.23% to $18.16.

IGA supermarket network owner Metcash Ltd (ASX: MTS) copped a beating, with its shares losing 10.64% of their value to close at $3.19 on Friday.

The Metcash share price slide began on Tuesday following a bearish note from Goldman Sachs.

The broker downgraded the stock to a sell rating and cut its 12-month share price target by 18% to $3.10.

The broker expects Metcash to underperform over the medium term.

Then on Friday, Metcash released a trading update advising investors that it expects its 1H FY25 underlying net profit after tax (NPAT) to be between $132 million and $135 million.

This compares to a $142.5 million NPAT in 1H FY24. Management blamed tough trading conditions in the hardware market. (Metcash also owns the Mitre 10 network).

ASX 200 wine share Treasury Wine Estates Ltd (ASX: TWE) rose 0.99% to finish the week at $11.77.

Endeavour Group Ltd (ASX: EDV) shares lost 1.77% to finish at $4.73 apiece on Friday.

A2 Milk Company Ltd (ASX: A2M) fell 4.65% to $5.74 last week.

There was no price-sensitive news from A2M last week, however the company did announce the appointment of a new independent non-executive director, Antonio Rivera.

Synlait Milk Ltd (ASX: SM1) shares also fell significantly, by 6.49%, to close at 36 cents. On Monday, the company revealed that its CEO, Grant Watson, had resigned after almost three years at the helm.

ASX 200 agricultural share Graincorp Ltd (ASX: GNC) gained 0.33% to close at $9.16.

Bega Cheese Ltd (ASX: BGA) rose by 0.19% to finish the week at $5.29 per share.

Stock feed producer Ridley Corporation Ltd (ASX: RIC) lifted 1.18% over the week to $2.58 per share.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post Here's how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

Cettire Ltd (ASX: CTT)

The Cettire share price is up 5% to $1.42. This online luxury products retailer's shares have been under pressure in recent weeks amid concerns about its performance and tough trading conditions. However, some significant insider buying this week appears to have given investor sentiment a big boost. Its founder and CEO, Dean Mintz, picked up almost 11.5 million shares for a total consideration of $15.8 million earlier this week. Though, it is worth noting that he did sell 27.5 million shares for $127.3 million in March.

Predictive Discovery Ltd (ASX: PDI)

The Predictive Discovery share price is up 10% to 24.2 cents. This morning, it was revealed that fellow gold miner Perseus Mining Ltd (ASX: PRU) has increased its stake in the company. Perseus has lifted its relevant interest in the issued shares of Predictive Discovery to 19.9%. This is up from its 13.8% stake that was acquired last month. Investors appear to believe this could be the start of a takeover. However, Perseus advised that it "has no current intention to acquire control or make a takeover offer for Predictive."

QBE Insurance Group Ltd (ASX: QBE)

The QBE Insurance share price is up 1.5% to $16.30. This may have been driven by the release of a broker note out of Goldman Sachs this morning. In response to the release of an update from one of the insurance giant's peers, the broker has retained its buy rating and $20.00 price target on QBE's shares. It said: "We are Buy-rated on QBE because 1) QBE underlying trends look very positive 2) QBE's achieved rate increases continue to be ahead of loss cost inflation and rate adequate. 3) North America on a pathway to improved profitability. 4) Valuation not demanding. 5) Strong ROE."

Synlait Milk Ltd (ASX: SM1)

The Synlait Milk share price is up 5.5% to 38.5 cents. This follows news that a major shareholder's attempt to block the issue of shares to other shareholders as part of a recapitalisation has been dismissed. It advised: "The Panel considered that each of a2MC and Bright were acting in pursuit of their respective commercial interests, rather than as part of a coordinated strategy relating to control over voting rights. Accordingly, the Panel declined to call a section 32 meeting under the Act and, based on the information before it, will not take any further action in relation to this matter at this stage."

The post Why Cettire, Predictive Discovery, QBE, and Synlait Milk shares are pushing higher appeared first on The Motley Fool Australia.

In morning trade, the infant formula company's shares are up 6% to $7.12.

Why are A2 Milk shares storming higher?

Investors have been bidding the company's shares higher after it settled its dispute with its dairy processor partner Synlait Milk Ltd (ASX: SM1).

As a reminder, last year A2 Milk gave Synlait Milk written notice cancelling the exclusive manufacturing and supply rights for stages 1 to 3 of its current infant milk formula (IMF) products for China, Australia, and New Zealand.

Synlait Milk did not take kindly to this and after failing with good faith negotiations, the two parties decided that a confidential binding arbitration would be the way to settle the dispute.

Dispute over

This morning, A2 Milk revealed that it has conditionally resolved the various disputes that were subject to this arbitration. This includes the exclusivity dispute, pricing disputes, and various other disputes.

As you might have guessed from the way A2 Milk shares are rising today, the settlement is favourable for the company. It notes the following:

Synlait accepts the validity of a2MC's notice dated 15 September 2023 cancelling the exclusive manufacturing and supply rights enjoyed by Synlait in respect of stages 1 to 3 of a2MC's current infant milk formula products for sale by a2MC in the markets of China, Australia and New Zealand. Synlait's manufacturing and supply exclusivity ceases from 1 January 2025.

In addition, it has been confirmed that A2 Milk owns the intellectual property rights for its IMF products. It adds:

a2MC owns the intellectual property rights for the Product Specifications of the IMF products and is free from any restrictions or obligations under the Nutritional Products Manufacturing and Supply Agreement (NPMSA) to source any Products from any person including Synlait, third party suppliers or internally.

This settlement remains conditional on Synlait Milk completing its equity raise and the refinancing of its existing banking facilities. A2 Milk notes that it has agreed to support and subscribe for shares under Synlait's equity raise, subject to finalisation of terms.

If the conditions to the settlement are satisfied, A2 Milk advised that the arbitration to resolve the disputes will be discontinued. In the meantime, the arbitration hearing has been adjourned.

Following today's strong gain, A2 Milk shares are now up an impressive 45% over the past 12 months.

Synlait Milk shares have also risen on the news and are up 16% at the time of writing.

The post A2 Milk shares storm 6% higher on peace deal with Synlait Milk appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) dairy stock closed yesterday trading for $6.82. In morning trade on Thursday, shares are swapping hands for $6.88, up 0.8%.

For some context, the ASX 200 is up 0.9% at this same time.

This comes after the company released an update on its voting intentions at today's special Synlait Milk Ltd (ASX: SM1) shareholders' meeting. That's taking place at 2pm today, New Zealand time.

Here's what's happening.

A2 Milk shares in the green ahead of Synlait loan vote

A2 Milk shares are marching higher after the company said it has been in discussion with Synlait regarding the junior dairy stock's recapitalisation plan. That plan includes a $130 million shareholder loan as well as Synlait's proposed equity raising and concurrent refinancing of its bank facilities.

 A2 Milk said it "continues to have concerns and will engage in discussions with Synlait in the coming weeks".

However, management confirmed that it would vote in favour of today's resolution.

The Synlait Milk share price is going ballistic on the news, up a whopping 50% to 34.5 cents.

If you own A2 Milk shares, you also own a slice of Synlait. A2 Milk holds almost 20% of Synlait shares.

If shareholders vote in favour today, Synlait will receive the $130 million loan from Bright Dairy, which owns around 39% of Synlait shares. Bright Dairy is not allowed to vote on the proposal under New Zealand trading rules.

Synlait said if the resolution received the green light today, it would draw down the entire loan to meet its $130 million bank payment, due on 15 July.

On 25 June, Synlait chair George Adams said, "Synlait is now progressing at pace a series of structural initiatives to address the scale of challenges we face today."

Adams added:

We are committed to resetting Synlait's balance sheet, with the support of Bright Dairy, to ensure we return to a position where we can deliver the growth potential we see in our core Advanced Nutrition and Foodservice businesses.

Bright Dairy director Julia Zhu said, "We are deeply committed to Synlait, believing its assets and operations to offer significant value and opportunity within regional and global dairy markets."

Zhu continued:

This $130 million shareholder loan facility is one part of Bright's wider support to see Synlait return to a much stronger financial and operating position, as early as practicable in this economic cycle."

With today's intraday gains factored in, A2 Milk shares are up 37% over 12 months.

The post A2 Milk shares lift amid backing for $130 million Synlait loan appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 2.5% to $1.49. This is the second consecutive day of declines for the counter drone technology company's shares. This appears to have been driven by profit taking from investors following some very strong gains. For example, the DroneShield share price is still up 55% in a month and almost 300% over the past six months. Strong sales growth, major contract wins, and a very positive outlook have been behind this rise.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is down almost 6% to $12.50. This follows news that the company has signed an agreement to acquire Fission Uranium Corp. (TSX: FCU). Paladin Energy will acquire 100% of Fission Uranium for 0.1076 shares for each Fission share. This implied an offer of approximately A$1.43 per share and valued the Canadian uranium company at A$1.25 billion. It seems that some investors aren't overly convinced by the deal or feel that Paladin Energy is overpaying.

RED 5 Limited (ASX: RED)

The RED 5 share price is down 8% to 37.7 cents. Investors appear to be selling this gold miner's shares after it reported some heavy insider selling. According to a notice, the company's managing director and CEO, Luke Tonkin, offloaded almost half of its holding. Tonkin sold 5,388,000 shares through an on-market trade on 20 June for an average of 41.9 cents per share. This equates to a total consideration of approximately $2.25 million. The company's CEO is left holding 6,276,766 Red 5 shares.

Synlait Milk Ltd (ASX: SM1)

The Synlait Milk share price is down 7% to 27.5 cents. This morning, the dairy processor announced a shareholder meeting to approve a $130 million loan from major shareholder Bright Dairy International. If approved, Synlait will fully draw down the loan to meet the $130 million payment due to its banks on 15 July 2024. Management warned that "if the $130 million payment is not made and the banks do not agree to alternative arrangements, the Board believes Synlait will need to cease trading or initiate a formal insolvency process."

The post Why DroneShield, Paladin Energy, Red 5, and Synlait shares are falling appeared first on The Motley Fool Australia.

Four ASX shares that are dragging on the market today are listed below. Here's why they are falling:

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is down almost 2% to $1.68. This could have been driven by profit-taking after a strong rebound recently. The mineral exploration company's shares are up 20% this month. Though, they remain down approximately 75% over the last 12 months despite this recent rebound.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 21% to 26 cents. Investors have been selling this lithium miner's shares after it revealed that it may curtail production because of weak lithium prices. The miner has also suspended its BP33 underground mine development for the time being to conserve cash.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price is down 7% to 6.5 cents. This may have been in response to Core Lithium's update. Investors may believe that Sayona Mining will have to do the same with its operations if lithium prices don't improve in the near term.

Synlait Milk Ltd (ASX: SM1)

The Synlait Milk share price is down 6% to 87.5 cents. This follows the release of an update on its dispute with A2 Milk Company Ltd (ASX: A2M). The two parties have jointly appointed an arbitrator and are agreeing on an arbitration agreement and timetable for the matters to be resolved during 2024. This relates to A2 Milk's decision to cancel exclusive manufacturing and supply rights. In other news, Synlait advised that it expects its half-year profit after tax to be down compared to the corresponding period.

The post Why Chalice Mining, Core Lithium, Sayona Mining, and Synlait shares are falling today appeared first on The Motley Fool Australia.

In morning trade, the infant formula company's shares are trading flat at $4.26.

What's going on with A2 Milk shares?

Today's underperformance is likely to be attributable to the release of an update on its dispute with its dairy processing partner Synlait Milk Ltd (ASX: SM1).

This is in relation to A2 Milk's decision to cancel the exclusive manufacturing and supply rights for stages 1 to 3 of its current infant milk formula (IMF) products for China, Australia, and New Zealand.

After failing with a 20-business day period of good faith negotiations, in October the two parties decided that a confidential binding arbitration would be the way to settle the dispute.

According to today's update, the parties have jointly appointed the arbitrator and are agreeing on an arbitration agreement and timetable for the matters to be resolved during 2024.

Synlait revealed that the arbitration will also include the following issues:

Whether the obligation on Synlait under the NPMSA to procure the supply of a minimum annual volume of product, and certain priority arrangements in favour of The a2 Milk Company under the NPMSA, will cease to apply if the exclusivity provision under the NPMSA is found to have been validly cancelled; What, if any, intellectual property under the NPMSA, and related know-how in the products, is owned by The a2 Milk Company; and Which party is responsible for certain one-off airfreighting costs.

New disputes

In other news, Synlait and A2 Milk have been squabbling over new pricing and have just failed in good-faith negotiations. As a result, Synlait plans to refer the pricing matters to another confidential binding arbitration.

A2 Milk has responded to Synlait's announcement, stating:

a2MC remains confident in its position in respect of all of the issues in dispute in the Exclusivity Arbitration, as noted in Synlait's announcement. The Company is also confident in its position overall in relation to the "New pricing and other matters in dispute", as noted in Synlait's announcement and which largely relate to matters initially raised by a2MC. All of these matters are commercial in nature and are not expected to have any operational impact on a2MC.

The post Why are A2 Milk shares underperforming today? appeared first on The Motley Fool Australia.