September 18, 2018 / 9:28 PM / a year ago

UPDATE 1-New Zealand's Synlait Milk posts 89 pct jump in full year profit

(Adds details of Talbot deal, guidance)

Sept 19 (Reuters) - New Zealand’s Synlait Milk on Wednesday posted an 89 percent jump in full-year net profit and cut its forecast milk price for the current 2018-2019 season to NZ$6.75 per kilogram of milk solids (kgMS)from NZ$7 per kgMS set earlier.

Synlait cited pressure on earnings from declining commodity prices as the reason for its cutting the forecast and said it anticipates commodity prices to improve in the medium term.

The company’s net profit after tax for the year ending 31 July was NZ$74.6 million ($49.13 million), against NZ$39.5 million a year earlier.

Synlait said top line revenue came in at NZ$879 million, compared with NZ$759 million a year ago.

The dairy company also announced plans to buy selected Talbot Forest Cheese assets and said investment for the project is expected to be in the range of NZ$30 million - NZ$40 million.

Synlait said in a statement it expects profitability for the year ahead would increase but not at the rate of fiscal 2018.

$1 = 1.5184 New Zealand dollars Reporting by Chandini Monnappa in Bengaluru; editing by John Stonestreet and Dan Grebler

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