In This Article:
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Revenue: $912 million for the first half of FY 2025.
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EBITDA: $67.9 million, a 7.3% increase compared to the prior period.
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Net Profit After Tax: $31.9 million for the first half of FY 2025.
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Interim Dividend: $0.15 per B class share, fully franked.
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Total Shareholder Return: 48.2% for the first half of FY 2025.
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Net Debt: Reduced to $202.1 million.
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Leverage Ratio: Reduced to 1.4 times.
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Gearing Ratio: Reduced to 25%.
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Return on Capital Employed: Increased to 13.5%.
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Australian Rice Pool Revenue: $183 million, a 6% decrease.
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International Segment Revenue: $418.8 million, slightly below the prior period.
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Rice Food Segment Revenue: $65.5 million, an 11% increase.
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Riviana Foods Revenue: $117.3 million, a 5% increase.
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CopRice Revenue: $126 million, a 3% decline.
Release Date: December 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ricegrowers Ltd (ASX:SGLLV) reported a solid financial performance for the first half of FY 2025, with consolidated revenue of $912 million, EBITDA of $67.9 million, and net profit after tax of $31.9 million.
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The company completed strategic acquisitions of SavourLife and Simply Delish, enhancing its CopRice and Riviana Foods segments.
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A fully franked interim dividend of $0.15 per B class share was declared, and the company qualified for inclusion in the S&P/ASX Agribusiness Index.
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The Rice Food segment saw a significant increase in profitability, with EBITDA up 69% and net profit before tax up 105% compared to the prior period.
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The company's leverage and gearing ratios improved, with net debt reduced to $202.1 million, providing balance sheet flexibility for future investments.
Negative Points
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Revenue for the first half of FY 2025 declined by 0.7% compared to the previous year, primarily due to pricing pressure in global tender markets.
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The Australian Rice Pool business faced challenges with a 6% revenue downturn, impacted by lower global tender pricing and geopolitical issues in key markets like the Middle East.
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The International Rice segment experienced a decrease in EBITDA by 5% and net profit before tax down 6% due to high costs of internationally-sourced rice and pricing pressures.
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The Corporate segment's EBITDA decreased by nearly $3 million from the prior period, affected by lower asset finance charges and property sales recorded in the previous year.
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The company faced challenges in the equine and ruminant markets, with declines in the leisure segment due to cost-of-living pressures and natural feed availability.