Wednesday 18th Jul, 2018

SunRice, targeting ASX float, delivers 32% profit growth

Photo SunRice Facebook

Grains processing giant SunRice has announced a $45.1 million net profit after tax in the 12 months ending April 30, a growth of almost a third year-on-year.

SunRice on June 29 announced consolidated revenue of $1.2 billion in its FY18 period, crediting its largest Riverina rice crop in three years, a successful period selling premium rice into high-return offshore markets, and a rebound in medium grain rice prices following a 10-year low.

The revenue figure was a 6% increase year-on-year. The $45.1 million NPAT figure is a 32% growth.

“SunRice has performed strongly through the commodity cycle with an immediate return to profit growth,” SunRice chief executive Rob Gordon 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 is listed on secondary stock exchange NSX. Its board is in the middle of convincing shareholders to vote in favour of a float on the ASX.

Gordon indicated the solid financial result in FY18 was evidence the company was poised to be able to take advantage of increased exposure on the stock market proper.

“SunRice is uniquely positioned for continued growth,” Gordon said, “driven by our refreshed five-year strategy, which builds on our resilience and operational strengths and focuses on how we can capitalise on global consumer food trends.

“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.”