Southern Riverina news
SunRice Group records best result in five years
The SunRice Group has recorded a 30 per cent increase in revenue on the previous year, and a net profit after tax of almost $50 million.
The announcements were made at the Group’s 2022 Annual General Meeting, conducted in Jerilderie last week.
This was the first face-to-face meeting since 2019.
Group revenue for the 2022 financial year was $1.3 billion, while Earnings Before Interest, Taxes, Depreciation, and Amortisation of $91.3 million and Net Profit After Tax of $48.7 million were up 86 per cent and 167 per cent respectively on the 2021 financial year.
The resurgence in Riverina rice production in 2021 underpinned the return of Australian rice to the SunRice Group’s most premium markets, and allowed the Australian Rice Pool Business to absorb its share of overheads.
Production has further improved, with the SunRice Group updating the total tonnage for the recently harvested 2022 crop to approximately 688,000 paddy tonnes – the largest in five years.
Looking ahead to planting of the next crop in October 2022, the Group will announce the opening of a pool and fixed price contracts within the next fortnight.
With water availability and water pricing in the southern connected Murray-Darling Basin system at their most favourable levels in many years, another large Riverina rice crop is anticipated for 2023. This crop will be processed and marketed throughout the 2024 financial year.
The Group is expecting top-line revenue to continue to build in the 2023 financial year. While the 2022 financial year finished strongly, the 2023 year has started with worsening inflationary pressures on key business inputs and costs, and continuing volatility and disruption to global shipping, which is placing pressure on earnings.
The Group remains focused on recovering the additional costs incurred progressively throughout the year.
SunRice Group CEO Rob Gordon said that after two years of extraordinary challenges – including the impacts of Australian drought, COVID-19 and unprecedented disruption to global supply chains – it was pleasing the business has bounced back so quickly and was able to deliver a strong performance in the 2022 financial year .
“The SunRice Group delivered an outstanding result in Financial Year 2022, which shows that we are back on track as the investments in line with our Growth Strategy of the past few years are starting to deliver benefits, as is the return of Australian rice and the continued strength of our international rice supply capability” Mr Gordon said.
“While we face an uncertain and dynamic trading environment, we believe the SunRice Group is well positioned for Financial Year 2023 and the future.”
The continued resurgence of Australian rice, coupled with SunRice’s multi-origin, multi-market international rice supply capability, has the Group well placed to benefit this year from an environment in which key markets are under-supplied.
The SunRice Group has built a diversified portfolio and maintained balance sheet strength and flexibility, which means it is well placed to take advantage of further expansion opportunities, either organically or through acquisitions.
The continued execution of the company’s Sustainability Strategy remains a core priority for the 2023 financial year , with all business units now pursuing individual sustainability plans aligned to the new Group targets and ambitions.