The All Ordinaries Index (ASX: XAO) is up 0.32% in late morning trade on Friday, but investors in one ASX share are enjoying much headier gains.

The soaring stock in question is Synlait Milk Ltd (ASX: SM1).

Shares in the New Zealand-based dairy processing company closed yesterday at 35.5 cents. In earlier trade, shares just leapt to 47.0 cents, up 32.4%. After some likely profit-taking, they are currently swapping hands for 44.0 cents apiece, up 23.9%.

As you can see on the chart above though, shares remain down 44% since this time last year.

Here's what's spurring renewed investor interest in the ASX share today.

ASX share leaps on strong guidance

The Synlait Milk share price is soaring after the company released financial guidance for the six months ending 31 January (H1 FY 2025).

The ASX share said its business recovery plan was on track and announced a further financial commitment to secure its milk supply.

Synlait expects half-year earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be in the range of $58 million to $63 million.

The company attributed its return to profitability to:

• New business development driving growth in advanced nutrition products
• Strong performance of its ingredients business driven by improved management of foreign exchange and an optimised product mix
• Continued cost control, driven by reduced consultancy spend, headcount reductions, and improved optimisation for the North Island assets

The ASX share also looks to be catching some tailwinds after the company announced additional financial commitments to retain and grow its milk supply in the South Island.

Synlait said it was "enhancing its financial package" to all South Island dairy farmers committed to a future with the company.

What did management say?

Commenting on the progress sending the ASX share soaring today, Synlait Milk acting CEO Tim Carter said, "The Synlait team has worked extremely hard to lift productivity and performance in the past six months."

Carter added:

Today's announcement demonstrates the huge progress being made and, while we cannot take our foot off the pedal, we are pleased to announce we expect to return to profitability at our upcoming half-year result.

Farmers are an important backbone to our business. To further recognise that, we have increased our commitment to existing and new South Island suppliers with additional premiums in place for each of the following three seasons. We are confident this will secure our milk supply which is critical to our future.

The ASX share is scheduled to release its H1 FY 2025 results on 24 March.