Synlait Milk to divest Dairyworks, Talbot Forest Cheese
The company is shifting focus to high-margin segments
2 June 2023
1 minute read
By: Synlait Milk Ltd, New Zealand's dairy milk producer, announced its plans to divest its Dairyworks and Talbot Forest Cheese businesses on Friday, as it focuses more on high-margin segments such as nutritional powder and food service, reported Reuters.
The move comes after the dairy firm slashed its 2023 profit for a second straight time in April, citing weak demand and a rise in financing and supply chain costs.
In April 2020, Synlait acquired Dairyworks, which specialises in the processing, packaging and marketing of dairy products, including cheese, butter and milk powder.
The company plans to use the proceeds from the divestiture to pay down debt.
