Grant Watson has stepped down as the CEO of Synlait Milk after a challenging year marked by significant financial hurdles and operational difficulties. The announcement came on October 21, 2024, although the reasons behind his departure were not disclosed. Synlait's chairman, George Adams, mentioned that Watson is taking a break to consider his next career move.

Watson, who took on the CEO role in January 2022, has led the company through a turbulent period. In recent months, Synlait completed a NZ$218 million equity raise to bolster its financial position following a NZ$130 million bailout loan from its largest shareholder, Bright Dairy of China. Furthermore, Watson successfully restructured the company’s debt and settled a protracted pricing dispute with its second-largest shareholder, The A2 Milk Company.

Despite these efforts, Synlait's financial performance has been disappointing. For the fiscal year ending July 31, the company saw a modest 2% increase in revenue, totalling NZ$1.64 billion. However, it reported an EBIT loss of NZ$182.7 million, contrasting sharply with the NZ$31 million profit recorded in the previous year.

The net profit after tax also fell dramatically to a loss of NZ$182.1 million, compared to a smaller loss of NZ$4.3 million the year before. Additionally, Synlait's debt has risen to NZ$551.6 million, up 33% from the previous fiscal year.

In response to Watson’s resignation, Tim Carter, head of Synlait’s subsidiary Dairyworks, will serve as interim CEO while the company searches for a permanent replacement. Aaron Kenny will temporarily lead Dairyworks during this transition.

Adams commended Watson’s leadership, noting the extensive challenges faced by Synlait in recent months. “Grant ably led the team through them, and his achievements are extensive, notably our balance sheet’s recent successful reset,” he stated.

Watson expressed gratitude for his time at Synlait, saying, “Synlait is an amazing and agile company, which I have been honoured to lead. Working with our passionate employees and farmers who care deeply about Synlait’s success has been a privilege.”

As Synlait moves forward, the incoming CEO will need to address the company’s financial recovery and profitability, navigating the operational challenges that lie ahead. Industry observers will be watching closely to see how the leadership transition impacts Synlait's strategy and performance in the competitive dairy market.