Newly-listed Synlait Milk's share price fell in morning trading after the company said its net profit for 2014 would be $7.5 million lower than forecasts for the July 31 financial year due the high NZ dollar and a reduced advantage from a favourable product mix in the second half.
By late morning, the shares were trading at $3.20, down 20c from Thursday's close, after earlier dipping as low as $3.15.
Synlait chairman Graeme Milne said dairy company's forecast 2013/14 net profit had been revised from a range of $25.0m to $30m to $17.5m to $22.5m. The prospectus forecast was $19.8m.
"We had been expecting to maintain the benefits of a very favourable product mix for the remainder of this financial year, however the exceptional market conditions experienced in the first half of the year have moderated," Milne said in a statement.
International commodity price volatility coupled with a high New Zealand dollar had resulted in the forecast milk price for the 2014 season dropping from a range of $8.30 to $8.40 per kg of milk solids o $8.20 to $8.40 per kg.