RIDLEY Corporation Limited has posted a net profit after tax of $42.4 million for the year to June 30, up 70pc from the FY21 result.
Released yesterday, the results include underlying earnings before interest, taxation, depreciation and amortisation of $80.1 million.
“This is a pleasing result with earnings growth of 16pc year on year, accompanied with a strengthening of our balance sheet as we paid down $60M in debt,” Ridley CEO Quinton Hildebrand said in a statement.
“However, what I am particularly proud of is how we have delivered for our customers through a challenging year, and won market share.”
Ridley’s bulk stockfeeds segment contributed an EBITDA of $34.4M, up 6pc from $32.5M in FY21, with the stronger performance driven by increasing throughput and efficiencies.
The business gained market share over the year, led by increased sales volumes in the poultry and dairy sectors.
Significant items for the year included Ridley’s sale of its extrusion business in Westbury, Tasmania, which returned a pre-tax profit of $6M, and the sale of its former feedmills at Bendigo and Mooroopna in Victoria and Murray Bridge in South Australia.
These jointly generated a FY22 pre-tax profit of $4.2M.
In the aquafeed segment, Ridley’s NovaqPro operations in Thailand broke even, and a small loss was made at its Yamba, New South Wales, facility prior to its closure in May.
Aquafeed volumes reduced following the sale of the Westbury facility in August 2021.
Sales to salmon customers were curtailed, while production was allocated to maintaining its supply to the growing barramundi and prawn varieties.
Ridley’s packaged feeds and ingredients segment delivering EBITDA of $58M, up 25pc from $46.5M in FY21, with the main contributor being the rendering business unit.
This is benefiting from the ongoing capital investment in product premiumisation and the higher market prices for rendered tallows and oils.
Volumes through the branded packaged products business grew strongly year on year as Ridley expanded market share and increased product lines into the urban pet-specialty chains.
Ridley expects to grow earnings and cashflow in FY23 by increasing sales as it supports the growth of its existing customers and wins market share, and implements cost savings and efficiency initiative.
Ridley is also enacting growth plans for each business unit, and cash generated from operations, and a strong balance sheet, are expected to support the ongoing investment in the business and the payment of dividends.
This is expected to leave capacity to finance the announced on-market share buy-back, and pursue growth opportunities.
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