Sunrice profit rebounds to $45.1 million

Grain Central, July 2, 2018

RELEASING its results for the year ended April 30, 2018, SunRice reports a consolidated revenue of $1.2 billion for the Group, a six per cent increase on the previous year (FY17) and Net profit After Tax (NPAT) of $45.1 million, a 32pc increase on the previous year.

Sunrice CEO, Rob Gordon

The business’s financial results were driven by a combination of factors that included:

  • the largest Riverina rice crop in three years;
  • ongoing success of selling premium Riverina rice into high returning markets and sourcing rice offshore to satisfy demand in lower returning markets;
  • a rebound in medium grain rice prices following a 10-year low;
  • and a recovery in profitability experienced by Trukai, CopRice and Riviana.

SunRice CEO, Rob Gordon, said the strength and benefits of the Rice Pool saw a $79 per tonne increase in the base C17 paddy price range during FY18, from $300/t when the Pool opened to $378.66/t at the close, rewarding those growers who supported the Pool in C17.

“SunRice has performed strongly through the commodity cycle with an immediate return to profit growth,” he said.

“Having demonstrated in FY17 that the business has the strength, resilience and flexibility to weather cyclical commodity downturns, FY18 was characterised by rebounding profitability and reinvigorated growth across the Group.

“SunRice’s international sourcing capabilities continued to allow the business to meet expanding demand for our products.

“Having maintained access to key premium markets in FY17 despite the lower Australian crop, international sourcing enabled the swift return of Riverina rice into these markets.

“Growth trends also returned to our Profit Businesses. CopRice recovered thanks to renewed stockfeed demand; Trukai re-established profitability through recovering market share; and Riviana saw an uplift in NPBT due to the Fehlbergs acquisition and cost controls.”

Mr Gordon said SunRice was uniquely positioned for continued growth, driven by a refreshed five-year strategy which built on the resilience and operational strengths of the business and focussed on capitalising on global consumer food trends.

“This strategy has already delivered results: we established strategic partnerships with Japanese food wholesalers to deliver value-added opportunities in the market; and we introduced our unique Low GI rice to new markets to help address diabetes and obesity. We are also well advanced in securing a vertically-integrated supply chain in Vietnam,” he said.

“This is an exciting time for SunRice and the Australian rice industry, which is the cornerstone of our ongoing success. We look forward to progressing our five-year strategy as we seek to build an enduring global company to benefit generations to come.”

Source: Sunrice


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