Ridley (RIC) H2 2025 earnings summary

Executive summary

• EBITDA grew 8.6% year-on-year to $97.8 million, with both Bulk Stockfeeds and Packaged & Ingredients segments increasing earnings and OMP exceeding acquisition expectations in its first full year.

• Statutory net profit rose 8.7% to $43.3 million, with operating cash flow of $93 million and a 97% cash conversion rate.

• Total Shareholder Return reached 42%, with fully franked dividends of 9.75cps declared.

• Significant restructuring reduced roles by 5%, delivering $5 million in annual cost savings from FY 2026.

• Major acquisitions included Incitec Pivot Fertilisers for $300 million and Carrick Feedmill, with funding supported by a $122 million capital raise.

Financial highlights

• Combined EBITDA reached $110.7 million, up 6.3% year-on-year.

• Dividend increased to $0.05 per share, fully franked.

• Net cash position at year-end was $64.7 million, compared to net debt of $50.8 million the previous year.

• Underlying leverage at 0.6x, well below the 1x-2x target range.

• ROFE (underlying) at 10.6%, slightly down from 11.2% year-over-year.

Outlook and guidance

• FY 2026 earnings growth expected, driven by margin gains in Packaged Feeds & Ingredients, volume growth in Bulk Stockfeeds, and initial contribution from the Fertiliser segment.

• Dividend payout ratio to remain targeted at 50%-70%.

• Fertiliser segment to contribute earnings from the Incitec Pivot acquisition, with initial efficiency gains anticipated.