Outstanding SunRice results
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.