Ridley (RIC) H2 2024 earnings summary

Executive summary

• Underlying EBITDA reached AUD 92.8 million, up 4.9% year-over-year, with strong contributions from the OMP acquisition and disciplined capital management supporting high cash conversion.

• Reported EBITDA grew 1.7% to AUD 90.0 million, while underlying EBITDA rose 4.9% to AUD 92.8 million.

• The board declared a fully franked dividend of AUD 0.0465 per share and announced an on-market buyback of up to AUD 20 million, reflecting confidence in the business outlook.

• OMP acquisition contributed AUD 3.2 million in Q4, ahead of expectations.

• Total Shareholder Return was 11%.

Financial highlights

• Combined EBITDA for the year was AUD 104.1 million, up 2.3% from the previous corresponding period.

• Net profit after tax decreased by AUD 1.9 million (4.5%), but underlying NPAT (excluding significant items) increased by 1% to AUD 42.3 million.

• Operating cash flow (underlying) increased to AUD 107.7 million from AUD 101.7 million year-over-year.

• Net debt increased to AUD 50.8 million, mainly due to the OMP acquisition, with leverage ratio at 0.55x.

• Final dividend of 4.65cps (fully franked), up from 4.25cps.

Outlook and guidance

• FY 2025 is expected to see growth in packaged and ingredient segments from OMP's full-year contribution and increased raw material supply.

• Bulk stock feed segment to benefit from increased volumes via debottlenecking projects and the Carrick Feedmill acquisition.

• Broiler feed volumes are expected to recover, and cost increases are anticipated to be offset by operational improvements.

• No reliance on tallow or meal price rebounds for FY 2025 growth; business expects to grow despite commodity softness.

• Strong balance sheet and cash generation support ongoing investment, dividends, and buyback.