Synlait, the New Zealand dairy group, expects to report an annual loss when the company files its full-year numbers next month.

In a stock-exchange filing, the company’s acting CEO said its annual numbers “will be a long way from where we want them to be”.

Synlait expects to book a net loss of NZ$70-75m (US$41.7-44.6m) for the year to the end of July. That result would compare to a loss of NZ$39.8m a year ago.

When Synlait reported those figures last September, it called its 2025/26 fiscal year “a valuable reset” for the business amid a deal to sell assets in New Zealand’s North Island.

However, the last 12 months have also proved challenging. Synlait ran up a first-half loss of more than NZ$80m amid sales and inventory issues.

“We are focused on our recovery roadmap, resetting the fundamental issues that have underpinned Synlait’s poor performance,” acting CEO Leon Fung said. “While our FY26 financial results will be a long way from where we want them to be, they will show improvement. This reflects that Synlait’s operations are on the right track – thanks to the hard work of our people.”

The company said it expects to report EBITDA ranging from a loss of NZ$2 to a NZ$3m gain, and an underlying EBITDA of NZ$36-41m.

Synlait said its “preliminary update” is subject to an external audit, impairment testing and the finalisation of its milk price for the 2025/26 season.

The business plans to report its full-year accounts on 28 September.

Earlier this month, Synlait rebuffed media reports it was in talks to sell the business to The A2 Milk Company or Fonterra.

Synlait supplies milk for A2 Milk Co.’s infant formula. A2 Milk Co. is also a shareholder in the business.