CONSOLIDATED revenue may be down for SunRice, but its net profit after tax has increased.
The company recently released its financial results for the six months to October 31.
SunRice’s consolidated revenue for the group was $544.9 million, a 4.1 per cent decrease compared to the previous corresponding period in 2016.
Net profit after tax (NPAT) was $24.1 million, a 15.9 per cent increase.
Financial results were driven by a combination of several factors that included:
- The larger Riverina rice crop of 802,000 paddy tonnes that was harvested in 2017.
- The gradual positive turnaround in profitability in Trukai, CopRice and Riviana.
- Favourable FX gains; partially offset by continued challenging trading conditions in several key SunRice markets.
Commenting on the results, SunRice chief executive officer Rob Gordon said the company was able to withstand challenging trading conditions.
“However, these half year financial results do not fully reflect the improved quality and diversity of SunRice’s earnings,” he said.
“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, generating 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.
“We expect the improved quality and diversity of earnings will flow through into full year results, especially given current market trends.
“In addition, 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 FY18.
“Following this pleasing start to the year and the positive outlook for the second half, we have upgraded our guidance for NPAT for FY18 to around $45 million (previously $40 million).”