Strong SunRice re­sults

Deniliquin Pastoral Times - - NEWS -

SunRice has im­proved its con­sol­i­dated rev­enue by six per cent and net profit after tax by 32 per cent in the past 12 months.

The lead­ing food com­pany ended its fi­nan­cial year on April 30 this year with a con­sol­i­dated rev­enue of $1.2 bil­lion and a net profit after tax of $45.1 mil­lion.

The com­pany has said fi­nan­cial re­sults were driven by a com­bi­na­tion of sev­eral fac­tors, which in­cluded the largest Rive­rina rice crop in three years.

The in­creases are also cred­ited to the on­go­ing suc­cess of sell­ing pre­mium Rive­rina rice into high re­turn­ing mar­kets and sourc­ing rice off­shore to sat­isfy de­mand in lower re­turn­ing mar­kets, a re­bound in medium grain rice prices fol­low­ing a 10-year low and a re­cov­ery in prof­itabil­ity ex­pe­ri­enced by Trukai, Co­pRice and Ri­viana.

It all led to a $79 per tonne in­crease in the base crop 2017 paddy price range, from $300 per tonne when the Rice Pool opened to close to $379 per tonne at the close.

‘‘SunRice has per­formed strongly through the com­mod­ity cy­cle with an im­me­di­ate re­turn to profit growth,’’ SunRice CEO Rob Gor­don said.

‘‘Hav­ing demon­strated in fi­nan­cial year 2017 that the busi­ness has the strength, re­silience and flex­i­bil­ity to weather cycli­cal com­mod­ity down­turns, fi­nan­cial year 2018 was char­ac­terised by re­bound­ing prof­itabil­ity and rein­vig­o­rated growth across the group.

‘‘SunRice’s in­ter­na­tional sourc­ing ca­pa­bil­i­ties con­tin­ued to al­low the busi­ness to meet ex­pand­ing de­mand for our prod­ucts. Hav­ing main­tained ac­cess to key pre­mium mar­kets in fi­nan­cial year 2017 de­spite the lower Aus­tralian crop, in­ter­na­tional sourc­ing en­abled the swift re­turn of Rive­rina rice into these mar­kets.

‘‘Growth trends also re­turned to our profit busi­nesses. Co­pRice re­cov­ered thanks to re­newed stock­feed de­mand; Trukai reestab­lished prof­itabil­ity through re­cov­er­ing mar­ket share; and Ri­viana saw an up­lift in net profit be­fore tax due to the Fehlbergs ac­qui­si­tion and cost con­trols.’’

Mr Gor­don said SunRice is uniquely po­si­tioned for con­tin­ued growth, which he said would be driven by a re­freshed five-year strat­egy ‘‘which builds on our re­silience and op­er­a­tional strengths and fo­cuses on how we can cap­i­talise on global con­sumer food trends’’.

‘‘This strat­egy has al­ready de­liv­ered re­sults,’’ he said.

‘‘We es­tab­lished strate­gic part­ner­ships with Ja­panese food whole­salers to de­liver value-added op­por­tu­ni­ties in the mar­ket and we in­tro­duced our unique Low GI rice to new mar­kets to help ad­dress di­a­betes and obe­sity.

‘‘We are also well ad­vanced in se­cur­ing a ver­ti­cally-in­te­grated sup­ply chain in Viet­nam.

‘‘This is an ex­cit­ing time for SunRice and the Aus­tralian rice in­dus­try, which is the corner­stone of our on­go­ing suc­cess.

‘‘We look for­ward to pro­gress­ing our five-year strat­egy as we seek to build an en­dur­ing global com­pany to ben­e­fit gen­er­a­tions to come.’’

To help se­cure its fu­ture growth, SunRice has pro­posed mov­ing com­pany shares from the Na­tional Stock Ex­change to the Aus­tralian Se­cu­ri­ties Ex­change, which would al­low it to sell B Class shares more broadly to raise cap­i­tal.

The list­ing will re­tain SunRice’s dual class shares model, with A Class shares to re­main grower owned and to re­tain their con­trol­ling prop­er­ties.

Ini­tial in­for­ma­tion ses­sions on the pro­posal have al­ready been held, with a de­tailed in­for­ma­tion book­let to be sent to share­hold­ers and more meet­ings to be held be­fore a vote at the SunRice AGM in Septem­ber.

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