AUSTRALIA’S largest stockfeed manufacturer has reported growth in both earnings and profits for the six months to 31 December when compared with its first-half 2024 figures.

In releasing its 1H25 results today, Ridley managing director and chief executive officer Quinton Hildebrand reported consolidated earnings before interest, taxation, depreciation, and amortisation of $50.6 million, up 9.3 percent from $46.3M in 1H25.

Ridley’s 1H25 net profit after tax was $22.2M, up 3.5pc from $21.4M in 1H24.

The reported period included the first operational months of two recent Ridley acquisitions, the Carrick feedmill in Tasmania, and Oceania Meat Processors, with sites in Australia and New Zealand.

“This includes the first full months of the OMP contribution, which exceeded our expectations,” Mr Hildebrand said in his address to shareholders.

Ridley reports over two segments: bulk stockfeeds, and packaged feeds and ingredients.

The bulk stockfeeds segment returned an EBITDA of $21.7M, down 5.7pc from the $23M record in 1H24.

“The result was impacted by the lack of supplementary feeding in the beef and sheep sectors when compared to the first quarter of the previous year.

“We also saw some effects of the Victorian avian influenza outbreak on our mills, which lasted longer than expected.”

“Partially offsetting these was the underlying volume growth in the ruminant business, primarily in dairy, and in monogastric, where the genetics issues that were affecting the broiler industry have been resolved.”

In bulk feed for monogastrics, volume grew by 2.2pc from 1H24, and by 2.8pc for ruminants.

Mr Hildebrand said the Carrick feedmill broke even its first four months of Ridley ownership, and a better result is expected in the current half with increased production.

“As planned, we have moved to a second shift.”

This is being used to supply volume previously made at Ridley’s mill in Victoria’s Gippsland region that was being shipped to Tasmania.

“The volumes that were produced at Pakenham in Gippsland, and supplying Tasmania, have been moved to the Carrick feedmill during this period, and we’ve also been winning new customers in Tasmania with the benefit of us being the local supplier.

“As a result of this, the second shift will be filled in Carrick imminently, and that will start giving us returns in the second half.”

Ridley’s plant at Clifton on Queensland’s Darling Downs is also looking at greater efficiencies.

“Debottlenecking of the Clifton feedmill was completed during this half, and only in January did we shift from a 24/7 to a 24/5 operation, which should lower the cost structure of that mill.”

Less for fish, more for dogs

In its packaged feeds and ingredients segment, Mr Hildebrand outlined changes for the Nerangba plant in Brisbane’s north.

“With the growth in demand for third-party packaged petfood opportunities, we’ve had to return the Nerangba facility back to a 24/7 operation.

“It was this time last year that we moved it down to a 24/5 operation, but with the good progress in dog-food demand, we’ve been operating on a 24/6 cycle, and are recruiting to go back to 24/7.

“This demand for petfood and profitable petfood growth has taken us to the decision to accelerate our withdrawal of feed to the domestic aquafeed market.

“This will give us additional capacity at Nerangba for petfood, which is more profitable than the aquafeed sales that we’ve been undertaking.”

Mr Hildebrand said Ridley’s exit from domestic aquafeed production will mostly occur during FY25.

“There’ll be a remaining contract that will continue into FY26 to fulfil our obligations.”

Mr Hildebrand said Ridley has streamlined its aqua expertise to focus on the commercialisation of the NovaqPro in the global prawn market, and Thailand has been the first country to register the booster, with others likely to follow in coming months.

“We expect registration in India, Indonesia, and Ecuador in calendar 2025.”

Mr Hildebrand said debottlenecking was taking place at both Maroota and Laverton to better handle increased volumes.

“We’ve also added capability in the team to better service the petfood sector, and that’s a key focus area for us.”

Mr Hildebrand said OMP was contributing to volume growth in ingredient recover and packaged dogfood sales.

Construction of OMP’s new Timaru facility in New Zealand was expected to be completed before October, when its existing Timaru lease expires, and Mr Hildebrand said the company was already starting to develop markets for increased volume to be produced in Timaru.

Mr Hildebrand said Ridley’s three-year growth plan includes a focus on continued growth in bulk stockfeeds.

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