Strong rice results

There were also strong growth in earnings, with earnings before interest, taxes, depreciation, and amortization (EBIDTA) of $42.6 million and net profit after tax of $19.6 million, up 16 per cent and 17 per cent respectively on the prior corresponding period.

A fully franked interim dividend of 10 cents per B Class Share has been declared, and the estimated paddy price range for crop year 2022 currently being processed and marketed has been updated to $435 to $470 per tonne for medium grain Reiziq - a naturally earned record.

SunRice Group CEO Rob Gordon says other key drivers of the first half performance include sales price increases across most segments and product categories, continued recovery of the CopRice business including positive impact of the Pryde’s EasiFeed acquisition and ongoing recovery of strategic Pacific markets.

“The SunRice Group delivered a strong financial performance, with improvements in both revenue and profitability reflecting the strength of the Group’s brands and market positioning, especially as consumer spending is currently impacted by the high inflationary environment,” he said.

“The various investments in strategic and organic growth initiatives across the Group over the last few years are delivering benefits and enabled us to withstand some of the challenges that are affecting other industries and companies, particularly across our profit businesses.

“We expect the revenue growth achieved (in the first half of the financial year) to continue into the second half of the year, supporting strong paddy returns in the rice pool business and profitability in the profit businesses, despite underlying operational and inflationary pressures continuing in the near term.”

Mr Gordon said the combination of the increased availability of Australian rice stemming from the large CY22 crop and secured global supply sources, positions the SunRice Group favourably to take advantage of any under supply in key markets currently impacted by drought, including the United States.

The Group should also be able to extend its participation in global tenders in the second half of the year, which will support returns for both the rice pool business and international rice segment.

SunRice has said the planting window for the CY23 has now closed, and while it has been disrupted by heavy rain falls and flooding activity across the Riverina, the Group is expecting ample Riverina rice supply in CY23.

“The current water outlook is pointing towards positive growing conditions into CY24,” the company’s outlook states.

“The group is well positioned to take advantage of these favourable conditions and current global market dynamics to help deliver positive returns to both A and B Class shareholders.”