SunRice; Australian rice foods giant shares their FY19 financial report

Posted by AFN Staff Writers on 28th June 2019

SunRice is one of the largest rice food companies in the world and one of Australia’s leading branded food exporters. On June 27th 2019, SunRice released their results of the 2019 Financial Year.

Here are the highlights of the report:

  • Consolidated revenue for the Group of $1.2 billion, up 1.3% year-on-year
  • Net Profit after Tax (NPAT) of $32.8 million, down 27% year-on-year
  • Fully franked dividend of 33 cents per B Class share, no change year-on-year
  • Final C18 full-year paddy price of $411.19 per tonne for Reiziq, up 8.6% year-on-year
  • Despite difficult trading conditions, successful progression of 2022 Growth Strategy

SunRice’s consolidated revenue for the Group in FY19 was $1.2 billion, a 1.3% increase compared to the previous year (FY18) and Net Profit After Tax (NPAT) was $32.8 million, which was slightly above the midpoint of guidance, although a 27% decrease compared to the previous year.Financial results were
driven by a combination of several factors that included:
• Significant challenges to profitability from negative foreign exchange impacts, particularly in the International Rice segment;
• Strong performance in CopRice’s beef and sheep feed categories;
• Benefits from capital investment programs on operational performance;
• The continued success of the business’ international sourcing program albeit with cost increases across some sourced rice versus prior year; and
• The continued growth in diversified earnings from CopRice and Riviana.

In the Rice Pool Business, strong pricing and the placement of SunRice products into higher returning markets internationally saw a record pool price of $411.19 per tonne* paid in C18, demonstrating the strength of SunRice’s ability to market Australian grown rice and rewarding growers. This was achieved despite the lower C18 crop and reduced production volumes due to poor C18 paddy quality. (* The previous highest pool price was $403/tonne paid in C15. This does not include years when SunRice has paid a guaranteed fixed price such as in C16 when $415/tonne was paid.)

A fully franked dividend of 33 cents per B Class Share was also announced by SunRice today.

Commenting on the FY19 financial results, SunRice CEO, Mr Rob Gordon, said:

“FY19 has been a significant year for SunRice, including listing on the Australian Securities Exchange (ASX) and continuing to pursue our 2022 Growth Strategy, cementing the SunRice Group’s position as a truly international and diversified FMCG business. Our achievements have been reflected in our ability to deliver NPAT on guidance despite challenging conditions, which undermined profitability. These included adverse foreign exchange movements of around $15 million compared to FY18 across International Rice, Rice Food and Riviana, particularly in the first half. Despite these challenges, we continued to successfully execute against and accelerate our 2022 Growth Strategy. Riviana and CopRice continued their growth strategies with the successful acquisitions of Roza’s Gourmet and the FeedRite assets, as well as repurposing our Coleambally Mill. “During the year, we have opened new markets in Europe, commenced trading in Libya and reestablished distribution relationships in Syria, as well as continuing to innovate and grow our product portfolio. “

To download the full report, click here.