Sun­rice happy with fi­nan­cials

Southern Riverina news - - News -

Lead­ing Aus­tralian branded foods busi­ness, Sun­rice, has an­nounced a strong fi­nan­cial re­sult for the six months ended Oc­to­ber 31, 2011.

Sun­rice chair­man Gerry Law­son said he was par­tic­u­larly pleased with the per­for­mance de­spite world medium grain rice prices con­tin­u­ing on a down­ward trend.

Con­sol­i­dated rev­enue for the six months to Oc­to­ber 31, 2011 was $482 mil­lion - 24 per cent higher than the same pe­riod last year.

Profit af­ter tax was $12.2 mil­lion, com­pared to $5.2 mil­lion as at Oc­to­ber 31 last year.

‘‘This re­sult has been achieved de­spite a strong Aus­tralian dol­lar and in a highly com­pet­i­tive mar­ket with medium grain prices con­tin­u­ing to de­cline,’’ Mr Law­son said.

‘‘In the first six months we have re­gained mar­ket share fol­low­ing the drought.

‘‘Our strat­egy to tar­get first half vol­umes has de­liv­ered the right re­sult.’’

Whilst

gear­ing fluc­tu­ates from month to month, Mr Law­son said the tim­ing of sales into ten­der mar­kets has de­liv­ered im­proved cash flow and work­ing cap­i­tal.

He said it has re­sulted in an av­er­age gear­ing for the six months of 98 per cent.

Sub­ject to the tim­ing of re­ceipt of the 2011 / 2012 rice crop, our fore­casts in­di­cate that gear­ing at year end is ex­pected to be around 100 per cent.

Sun­rice act­ing CEO David Keldie said the busi­ness re­mained strong and would con­tinue to fo­cus on grow­ing its global mar­kets, prod­uct and mar­ket­ing in­no­va­tion.

Gerry Law­son

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