Core Viewpoint - Synlait Milk has issued a profit warning, projecting a first-half loss of up to NZ$82 million (US$49.4 million) due to ongoing operational and cost impacts from previous manufacturing disruptions and weaker commodity returns [1][2]. Financial Performance - The company forecasts a net loss after tax of between NZ$77 million and NZ$82 million for the six months ending January, compared to a net profit after tax of NZ$4.8 million in the same period last year [2]. - Synlait Milk anticipates a half-year EBITDA loss of between NZ$28 million and NZ$33 million, a significant decline from the EBITDA of NZ$63.1 million recorded in the previous year [3]. - The company projects an underlying net loss of NZ$33 million to NZ$38 million, with an underlying EBITDA forecast of break-even to NZ$5 million [3]. Operational Challenges - Manufacturing issues at the Dunsandel site have largely been resolved, but the company continues to face related cost and operational impacts [2]. - The rebuilding of inventory across multiple product areas has required significant adjustments to manufacturing plans, impacting margins and increasing operating costs [4][5]. Strategic Outlook - Synlait Milk views the current financial year (2025/2026) as a "valuable reset" for the business, with a planned divestment of its North Island assets expected to strengthen its financial position through debt reduction [3][4]. - The company intends to focus on its operations in Canterbury post-transaction, acknowledging that recovery will take time [4]. - The CEO expressed disappointment with the six-month results but noted progress in operations and leadership, emphasizing a strategy reset aimed at returning to success within at least 12 months [6][7].

Core Viewpoint - WPP, the advertising agency, issued its second profit warning since July and its first under the new CEO, leading to a significant decline in its stock price [1] Company Summary - The profit warning indicates ongoing challenges for WPP, reflecting a difficult operating environment [1] - This warning marks a notable event as it is the first under the leadership of the new chief executive, suggesting potential issues with the company's strategic direction [1] - The stock's sharp decline following the announcement highlights investor concerns regarding WPP's financial health and future performance [1]