(Reuters) -New Zealand’s Synlait Milk reported a narrower annual net loss on Monday, aided by strong customer demand, while announcing the sale of its North Island assets for NZ$307 million ($177.20 million) to U.S.-based Abbott Laboratories.
The dairy producer said in a statement that strong customer demand and new product development in the Advanced Nutrition business segment delivered a NZ$21.1 million underlying gross margin increase, while a turnaround from last fiscal year’s poor Ingredients business performance also helped the bottom line.
The company announced the divestiture of its North Island assets to healthcare firm Abbott, which is expected to strengthen Synlait’s financial position by significantly reducing debt. The deal is expected to be completed by next April.
Synlait’s majority shareholder, Bright Dairy Holding, will irrevocably vote in favour of the transaction, it said.
Synlait reported a total net loss after tax of NZ$39.8 million ($22.97 million) for the year ended July 31, after posting a loss of NZ$182.1 million a year earlier.
The company reported an underlying net profit after tax of NZ$0.8 million, versus a loss of NZ$60.4 million last year.
($1 = 1.7325 New Zealand dollars)
(Reporting by Kumar Tanishk in Bengaluru; Editing by Leslie Adler)
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