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Wednesday, 20 December 2017 11:52

Profits up

Branded food processor SunRice experienced a big year-on-year 15.9 per cent lift in net profit after tax for the six months to October 31 this year. Net profit after tax was $24.1 million for the half year.

The company’s consolidated revenue was $544.9 million, a 4.1 per cent fall.
SunRice said the financial results were driven by a combination of factors including: a larger crop of 802,000 paddy tonnes; the gradual positive turnaround in profitability at Trukai, CopRice and Riviana; and favourable FX gains. These were partially offset by continued challenging trading conditions in several key SunRice markets. 
CEO, Rob Gordon, said the company has built a commercially resilient and diversified business able to withstand challenging trading conditions and quickly recover when markets improve.
“During the period, the larger Riverina C17 crop of 802,000 tonnes resulted in a 21 per cent lift in rice pool revenue and net profit before tax increased by 33 per cent compared with the previous year,” he said.
“These half year financial results do not fully reflect the improved quality and diversity of SunRice’s earnings. 
“As a consequence of SunRice’s strategy to focus on exporting Australian rice to premium markets and to secure alternative sources of rice beyond the Riverina, our international trading activity has developed into an important pillar of the business. “Trading has generated increased earnings to balance other segments such as Trukai, CopRice and Riviana, which have all experienced a gradual turnaround in trading conditions during the half year. 
“We expect the improved quality and diversity of earnings will flow through into full year results, especially given current market trends.
“Several business segments traditionally experience seasonal trading uplifts during the second half and tender markets are also anticipated to drive volume expansion during the remainder of this financial year. 
“Following this pleasing start to the year and the positive outlook for the second half, we have upgraded our guidance for net profit after tax for FY18 to around $45 million - up from $40 million previously.” 

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