(Reuters) - New Zealand's Synlait said on Friday an arbitrator has been appointed for the arbitration process with its second-largest stakeholder A2 Milk Co and both the companies are working on an agreement following cancellation of their exclusivity arrangements.
Both the companies agreed the arbitration process will include whether Synlait's obligation to procure a minimum annual volume of infant milk formula product, and certain other priority arrangements in favour of a2 Milk, will cease to apply.
In September, A2 Milk said it was terminating its exclusive rights to manufacture and supply a few of its infant milk formula products, claiming that Synlait's fiscal 2023 delivery performance fell short of what was necessary for it to keep these rights. Synlait disputed the claims.
Synlait on Friday forecast a lower half-year net profit after tax compared with the prior corresponding period. The company reported a net profit after tax of NZ$4.8 million for the first half of fiscal 2023.