Why did Synlait Milk stock drop today?

The company issued a fresh profit warning, signaling a deeper loss for FY2024. That reset earnings expectations, raised concerns about leverage and cash flow, and pushed the Synlait share price to a five-month low. After such warnings, liquidity can thin and spreads can widen, which often accelerates downside follow-through in the short term.

Is Synlait Milk stock attractive after the selloff?

It depends on risk tolerance. Turnarounds can offer upside if management stabilizes margins and strengthens the balance sheet. Until there is clarity on cash flow, covenants, and customer volumes, we view it as high risk. Many investors will wait for confirmed milestones before increasing exposure.

How can investors in Germany gain exposure to SML.NZ?

Use brokers that offer access to the NZX, and place limit orders during New Zealand market hours for better execution. Factor in EUR/NZD conversion costs and custody fees. Alternatively, consider funds with New Zealand exposure to reduce single-name risk, though this dilutes company-specific upside and downside.

What are the key risks now?

Leverage and covenant headroom, customer concentration in infant formula, and margin pressure from milk input costs are central. Execution risks around cost control and plant utilization also matter. Currency moves against the euro add variability for German investors. Together, these can extend volatility after a profit warning.

What catalysts could improve sentiment?

Clear guidance with cash flow visibility, evidence of margin recovery, and confirmation or renewal of major customer contracts would help. Any progress on refinancing, waivers, or asset sales that strengthens liquidity could narrow the risk discount. Consistent operational KPIs over several quarters would further support the case.

Global Market Insights

SML.NZ Stock Today: Five-Month Low After Loss Warning — February 8

ByDanny Kontos February 8, 2026February 8, 2026

Synlait Milk stock fell to a five-month low on February 8 after a fresh loss warning. The New Zealand-listed SML.NZ slide puts debt, cash flow, and customer concentration back in focus. For investors in Germany, the move matters because it tests sentiment across New Zealand dairy and may ripple into European dairy narratives. We explain what changed, the risk checklist to track, and practical next steps for EUR-based portfolios seeking sensible exposure to this volatile turnaround story.