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.

• Continued investment in brands, innovation, infrastructure, and sustainability initiatives, including emissions reduction targets and on-farm trials to cut greenhouse gases.

Financial highlights

• Fully franked total dividend for 2024 reached a record AUD 0.60 per B-Class share, including a 5 cent special dividend, with a yield of 9.2%.

• Basic EPS grew 16% to just over AUD 0.97; P/E ratio at year-end was 6.7x.

• Net debt and gearing reduced to AUD 224 million and 27%, respectively; all core debt repaid during FY24.

• Return on capital employed increased to 12.7% from 9.8% in FY 2023.

• Dividend payout ratio at 62% for FY24.

Outlook and guidance

• Aims to repeat strong top and bottom line performance in FY25 despite anticipated challenges from softening sale prices, heightened competition, unfavorable FX, and cost pressures.

• Paddy price range for crop year 2024 remains AUD 370–430 per ton for medium grain; substantial crop expected in 2025 based on water availability and full carryover levels.

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