Ricegrowers (SGLLV) H2 2025 earnings summary

Executive summary

• Achieved near record profitability in FY25 with net profit after tax up 4% to $70.7 million and EBITDA up 3% to $147.7 million, despite a 2% revenue decline to $1.85 billion, driven by operational efficiencies, disciplined execution, and strategic acquisitions aligned with the 2030 Growth Strategy.

• Branded products accounted for approximately 70% of group sales, with strong growth in premium rice, bakery, and pet food segments, and 60% of revenue generated outside Australia across 50+ countries.

• Launched over 40 new products, expanded into premium pet food, and advanced sustainability initiatives, including a validated Net Zero Roadmap and science-based emissions targets.

• Maintained a stable balance sheet with net debt at $218.2 million and gearing at 26%, enabling continued investment in growth and innovation.

Financial highlights

• Revenue declined 2% to $1,850.6 million, mainly due to increased competition and pricing deflation.

• EBITDA increased 3% to $147.7 million, with margin improving to 8.0% from 7.7% in FY24.

• Net profit after tax rose 4% to $70.7 million; basic EPS for B Class Shares increased 6% to 102.9 cents; fully franked dividend per B Class Share increased 8% to 65 cents.

• Paddy price for medium grain rice was $406/tonne, down from $430/tonne in the prior year due to lower mill out rates.

• 10-year total shareholder return of 350%, with $252 million in dividends declared over the period.

Outlook and guidance

• FY26 expected to build on FY25 results, with growth anticipated in both revenue and profit, supported by a strong Australian crop, expanded product offerings, and a robust innovation pipeline.

• Positive drivers include normalization of global rice prices, strong demand for jasmine and basmati varietals, and a large Australian rice crop.

• Challenges include intensified competition, weak AUD and PGK, inflationary pressures, and legislative changes in PNG affecting local trading.

• CY25 paddy price guidance remains at $380–$450/tonne for medium grain, with lower than average mill-out rates expected to pressure returns.