Out­stand­ing SunRice re­sults

Southern Riverina news - - NEWS -

SunRice has an­nounced an out­stand­ing fi­nan­cial re­sult for the 12 months end­ing April 30, 2015.

It said it was able to achieve a sig­nif­i­cant up­lift in rev­enue and profit com­pared with the same pe­riod last year.

The com­pany has also an­nounced its fi­nal paddy price for the 2014 crop year, and an in­creased share­holder div­i­dend.

SunRice re­ported con­sol­i­dated rev­enue for the group of $1.25 bil­lion, up 8.3 per cent com­pared with the same pe­riod last year.

Net profit af­ter tax was $49.2 mil­lion, 46.8 per cent higher than the 12 months to April 30, 2014.

The com­pany im­proved re­turn on cap­i­tal em­ployed for a sixth con­sec­u­tive year, in­creas­ing from 14.1 per cent in the 2014 crop year to 15.8 this crop year — up 170 ba­sis points.

SunRice CEO Mr Rob Gor­don said the full year fi­nan­cial per- for­mance was an out­stand­ing re­sult.

He said it was driven by the suc­cess­ful ex­e­cu­tion of the group’s strat­egy to fo­cus on pre­mium branded mar­kets and build ca­pac­ity and ca­pa­bil­ity across the or­gan­i­sa­tion.

‘‘In the three years since in­tro­duc­ing the group’s growth strat­egy in 2011/12, the re­sults have ex­ceeded ex­pec­ta­tions,’’ Mr Gor­don said.

‘‘In that pe­riod we have grown con­sol­i­dated rev­enue by $250 mil­lion or 25 per cent, with a strong com­pound an­nual growth rate of 7.6 per cent, in­creased net profit af­ter tax by $26.5 mil­lion or 117 per cent and in­creased the full year paddy price for medium grain (Reiziq) by 43.5 per cent from $275 per tonne in 2011/12 to $394.62 per tonne in 2014/15.

‘‘These re­sults re­flect SunRice’s sub­stan­tial plat­form for ac­cel­er­ated growth, which will ben­e­fit our share­hold­ers, grow­ers and the com­mu­ni­ties we sup­port.’’

The fi­nal Crop Year 2014 paddy price of $394.62 per tonne for medium grain (Reiziq), was also an­nounced on Wed­nes­day, and $524.62 per tonne for Koshi­hikari.

The com­pany also de­clared a record to­tal div­i­dend (fully franked) of 31.0 cents per share for B Class share­hold­ers (this in­cludes a spe­cial div­i­dend of 5.0 cents per B Class share paid in Jan­uary 2015), up 34.8 per cent com­pared with the same pe­riod last year.

This rep­re­sents a div­i­dend pay­out ra­tio of 40 per cent and a div­i­dend yield of 6.7 per cent.

SunRice chair­man Laurie Arthur said the board was de­lighted to be able to im­prove re­turns for A and B Class share­hold­ers in this way.

‘‘We are very pleased to an­nounce such a strong fi­nal C14 paddy price, which rep­re­sents more than $330 mil­lion in pay­ments to our grow­ers and A Class Share­hold­ers, while de­liv­er­ing value for our in­vestor share­hold­ers with the record div­i­dend, ’’ he said.

‘‘This demon­strates SunRice’s abil­ity to gen­er­ate the best pos­si­ble re­turns for both our grow­ers and share­hold­ers.

‘‘In our Rice Pool busi­ness, per­for­mance was driven by im­pres­sive sales and profit growth across in­ter­na­tional mar­kets.

‘‘When com­bined with im­proved milling yields for the C14 crop and strong global pric­ing, this has had a pos­i­tive ef­fect on the C14 paddy price.

‘‘The record div­i­dend re­flects the strength of our non-Rice Pool busi­nesses.’’

Full SunRice re­sults, in­clud­ing op­er­a­tion per­for­mance fac­tors like global mar­kets and do­mes­tic mar­kets, will be pre­sented at the Rice­grow­ers Lim­ited an­nual gen­eral meet­ing.

It will be held from 10.30am on Fri­day, Au­gust 21 at Jer­ilderie Civic Hall, Jer­ilderie.

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