Sept 29 (Reuters) - New Zealand's Synlait Milk ( SMLKF )

reported a narrower annual net loss on Monday, aided by strong

customer demand, while announcing the sale of its North Island

assets for NZ$307 million ($177.20 million) to U.S.-based Abbott

Laboratories ( ABT ).

The dairy producer said in a statement that strong customer

demand and new product development in the Advanced Nutrition

business segment delivered a NZ$21.1 million underlying gross

margin increase, while a turnaround from last fiscal year's poor

Ingredients business performance also helped the bottom line.

The company announced the divestiture of its North Island

assets to healthcare firm Abbott, which is expected to

strengthen Synlait's financial position by significantly

reducing debt. The deal is expected to be completed by next

April.

Synlait's majority shareholder, Bright Dairy Holding, will

irrevocably vote in favour of the transaction, it said.

Synlait reported a total net loss after tax of NZ$39.8

million ($22.97 million) for the year ended July 31, after

posting a loss of NZ$182.1 million a year earlier.

The company reported an underlying net profit after tax of

NZ$0.8 million, versus a loss of NZ$60.4 million last year.

($1 = 1.7325 New Zealand dollars)