Ricegrowers (SGLLV) H1 2025 earnings summary

Executive summary

• Revenue for 1H FY25 was $912.5 million, down 0.7% year-over-year, with EBITDA up 7.3% to $67.9 million and NPAT up 4.5% to $31.9 million, driven by favorable product mix, new launches, and cost control.

• Acquisitions of SavourLife and Simply Delish expanded CopRice and Riviana Foods, strengthening presence in high-growth, higher-margin categories.

• Declared a fully franked interim dividend of 15 cents per B Class Share; inclusion in S&P/ASX Agribusiness Index achieved.

• Total Shareholder Return for 1H FY25 was 48.2%, with a five-year return of 408%, significantly outperforming the S&P/ASX 300 Accumulation Index.

Financial highlights

• Group revenue was $912.5 million, down 0.7% year-over-year due to global pricing pressures.

• EBITDA rose to $67.9 million (up 7.3%), and NPAT increased to $31.9 million (up 4.5%).

• Basic EPS for B Class shares was 47.2 cents, up 0.6% year-over-year.

• Net debt reduced to $202.1 million; core debt fully repaid in April 2024.

• EBITDA margin improved to 7.4%; leverage ratio at 1.4x, gearing at 25%, and Return on Capital Employed at 13.5%.

Outlook and guidance

• Full-year FY25 revenue expected to be broadly consistent with FY24; moderate EBITDA growth anticipated, with NPAT impacted by a higher effective tax rate.

• Focus remains on branded product sales, cost and procurement savings, and operational improvements.

• Headwinds include Northern Hemisphere rice supply, global price competition, Middle East geopolitical tensions, and ruminant/equine market softness.

• Updated CY24 paddy price range to $380–$420 per tonne for medium grain rice.

• Second half expected to benefit from seasonal factors and festive consumption.