Ricegrowers (SGLLV) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY25 was AUD 912.5 million, down 0.7% year-over-year, with EBITDA up 7.3% to AUD 67.9 million and NPAT up 4.5% to AUD 31.9 million, driven by favorable product mix, new launches, and cost control.

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

• Declared fully franked interim dividend of AUD 0.15 per B-class share; inclusion in S&P/ASX Agribusiness Index increased share liquidity.

• Achieved a five-year total shareholder return of 408% and 1H FY25 TSR of 48.2%, significantly outperforming the S&P/ASX 300 Accumulation Index.

Financial highlights

• EBITDA increased by 7.3% year-over-year to AUD 67.9 million; NPAT up by 4.5% to AUD 31.9 million; revenue declined 0.7% due to global pricing pressure.

• Basic EPS for B Class shares was 47.2¢, up 0.6% year-over-year; EBITDA margin improved to 7.4%.

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

• Leverage and gearing ratios improved to 1.4x and 25%, respectively; return on capital employed increased to 13.5%.

• Fully franked interim dividend of AUD 0.15 per B-class share declared; DRP remains suspended.

Outlook and guidance

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

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

• Headwinds include northern hemisphere rice supply, geopolitical tensions, price competition, and challenges in ruminant and equine markets.

• CY24 paddy price range updated to AUD 380–420/tonne for medium grain rice due to lower milling yields and global tender pricing lows.

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