Ricegrowers (SGLLV) H2 2024 earnings summary

Executive summary

• Achieved record group revenue of AUD 1.88 billion, up 15% year-over-year, and net profit after tax rose 24% to AUD 68.2 million, driven by international expansion and disciplined execution of the growth strategy.

• Over half of revenue generated outside Australia and New Zealand, with 70% from branded products, reflecting successful global market expansion.

• EBITDA increased 23% to AUD 143.9 million, supported by product innovation, supply chain agility, and operational efficiencies.

• Maintained disciplined capital management, repaid all core debt, and suspended the dividend reinvestment plan.

• Advanced sustainability initiatives, including emissions reduction targets, on-farm trials, and packaging improvements.

Financial highlights

• Revenue reached AUD 1.88 billion, up 15% year-over-year; EBITDA was AUD 143.9 million (+23%); net profit after tax AUD 68.2 million (+24%).

• Basic EPS grew 16% to just over AUD 0.97 per B Class Share; P/E ratio at 6.7x based on closing share price.

• Fully franked dividend of AUD 0.60 per B Class Share, including a special dividend; dividend yield of 9.2% and payout ratio of 62%.

• All core debt repaid during FY24; net debt reduced to AUD 224 million and gearing to 27%.

• CY23 paddy price set at AUD 430 per tonne for medium grain rice.

Outlook and guidance

• Aims to repeat strong top and bottom line performance in FY25, despite headwinds from softening sales prices, increased competition, FX volatility, and cost pressures.

• Focus remains on branded product sales, pricing strategies, innovation, and operational improvements.

• CY24 paddy price range maintained at AUD 370–430 per tonne; substantial crop expected in CY25.

• CY24 Riverina harvest was large at 618,000 paddy tonnes.