WELLINGTON, New Zealand--Synlait Milk Ltd. indicated its full-year earnings would fall by more than previously forecast because of the weakened financial performance of a key customer, a2 Milk Company Ltd.

The New Zealand milk-powder manufacturer said its previous guidance--that 2021 financial year net profit would be approximately half of the previous year--was no longer attainable.

It said there was ongoing uncertainty about demand from a2 Milk. Volatility in commodity prices and global shipping delays were also factors, the company said.

Synlait said it had withdrawn its earlier earnings guidance to investors and would provide an update at its half-year result on March 29.

A2 Milk last week lowered its full-year earnings forecast for the third time since September as the pandemic has disrupted Chinese surrogate shopping sales.

Write to Stephen Wright at stephen.wright@wsj.com

(END) Dow Jones Newswires

03-03-21 1522ET