In its half year financial results released last week, the global food company said group revenue for the period was $912 million.
In the first half of financial year 2024, group revenue was $919 million.
The report demonstrated solid growth in earnings, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $67.9 million and net profit after tax of $31.9 million, up seven per cent and five per cent respectively on the prior corresponding period.
Other positives include a fully franked interim dividend of 15 cents per B Class share declared and estimated range for the crop year 2024 pool updated to $380 to $420 per tonne for medium grain.
SunRice has also completed acquisitions of SavourLife and Simply Delish the first half of the financial year, bolstering the CopRice and Riviana Foods segments respectively.
Group CEO and managing director Paul Serra said this “solid financial performance” was largely delivered in line with expectations.
“We continued to build profit margins and consolidated the revenues achieved over the last 12 months, despite some of the previously foreshadowed headwinds impacting consumer spending and pricing in international rice markets,’ he said.
“We are pleased to declare a fully franked interim dividend of 15 cents per B Class share and note that the increased liquidity in our B Class shares over the last six months has qualified Ricegrowers Limited for inclusion in the S&P/ASX Agribusiness Index.
“Over the first half of FY25, SunRice has delivered a Total Shareholder Return of 48.2 per cent.
“Over the last five years, SunRice has delivered an outstanding Total Shareholder Return of more than 408 per cent compared to the S&P/ASX 300 Accumulation Index of 122 per cent.
“These results continue to demonstrate the strength and resilience of our business model, brands and product portfolio, and the focused efforts of our people to realise new opportunities and pursue our growth ambitions while actively managing challenging geopolitical and market conditions.
“Looking ahead to the full year, we expect revenue to be broadly consistent with financial year 2024, EDBITA to grow moderately on the back of improved profit margins, and a higher effective tax rate to impact net profit after tax.
“By remaining focused on driving branded product sales, delivering cost and procurement savings, as well as operational and manufacturing improvement initiatives across the group, we are confident in our ability to deliver for the second half of FY25.”
The decline in overall group revenue was driven by cost of living and pricing demand challenges.
“Volumes grew in some markets and product categories, including rice cakes, rice flour and Toscano’s bakery goods,” the company explained.
“The ample supply of US rice also enabled substantial growth in US export volumes. However, it contributed to lower pricing in some markets, particularly global tender markets.
“The group also faced challenges including cost of living pressures impacting the food service sector and consumer spending patterns in Australia, as well as the contraction of the ruminant sector in Australia and New Zealand.
“Combined, these pricing and demand challenges resulted in the slight drop in group revenue compared with the prior corresponding period.”
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