Ricegrowers Limited (SunRice) recorded $1.85 billion in revenue for FY25, with a net profit after tax of $70.7 million. Despite revenue being down on FY24, a shift to higher value branded products and manufacturing efficiencies saw profitability improve.
Outgoing chair, Laurie Arthur, said CY25 had delivered “exceptional” farm yields. “A 32-hectare crop from one of our growers of Matilda that averaged 17.3 T/ha is a world record for medium grain. Over 400,000 tonnes of Matilda was produced at an average of 12.5 T/ha. These yields are world-class, and I don’t believe any other rice-producing country can replicate them,” Arthur said.
SunRice Group operates in 10 countries and has a presence in close to 50 markets around the world.
Group CEO, Paul Serra, said its portfolio has more than 1500 products across 45 brands and employs around 2400 people.
“Around 60 per cent of our revenue is now generated outside of Australia. Importantly, around 70 per cent of our sales are coming from branded products,” Serra said.
Snapshot
- NPAT: $70.7m, up 4% pcp;
- EBITDA: $147.7million, up 3% pcp;
- Fully franked final dividend: 50c per B Class Share, total dividend for FY25 to 65c, up from 60c total dividend pcp;
The paddy price for growers was $406/T for medium grain rice, down from $430/T due to “the lowest average wholegrain mill-out rates in more than five years” and the rebound of the Californian rice crop from severe drought, which impacted international tender markets and pricing. Revenue for the Rice Pool business was down four per cent to $370.2 million.
Arthur said the company was working in a “challenging policy environment”, with water reform still “front and centre”.
“The continual uncertainty of water reform is a plague on irrigation communities. Large-scale, rapid buybacks destabilise water markets, drive prices up and erode confidence – impacting everything from planting decisions to long-term investment. This threatens the sustainability of industries like ours,” he said.
“We have consistently urged governments to return to the original intent of the 2007 Water Act – a balanced and forward-looking water policy for the Murray-Darling Basin that supports both environmental outcomes and the long-term viability of our irrigation industries and regional communities.”
International Rice generated revenue of $860.4 million, down 4 per cent pcp due to increased competition in Pacific and US markets and despite strong growth in the Middle East.
Rice Food delivered a strong performance, with revenue up 10 per cent to $132.5 million and EBITDA up 33 per cent.
Volume growth was driven by new opportunities in Rice Flour and Rice Cakes and product innovation across the portfolio, despite pressures from lower priced offerings in Microwave Rice. Margins further benefited from operational and manufacturing efficiencies, Serra said.
Riviana Foods saw revenue grow 4 per cent to $230.8 million, driven by Toscano and Hart and Soul brand momentum and the acquisition of Simply Delish, despite a softening Food Service Sector and increased competition in some categories.
While still constrained by foreign exchange pressures on imported products and integration challenges, EBITDA increased 11 per cent to $7.9m through operational changes in its distribution network and cost savings.
Sustainability milestones included:
- Validation of its Science Based Targets by the Science Based Targets initiative, making SunRice one of the few companies in Australia with Forestry, Land and Agricultural emissions targets;
- release of Net Zero Roadmap, focusing on the next five years to support SunRice to meet its near-term (FY33) emissions reduction targets;
- undertook benchmarking review of the Group’s FY24 Modern Slavery Statement and received an A rating for the first time; and
- made important progress against our APCO targets, with 95% of our Australian packaging now recyclable, reusable or compostable.
