Turning opportunities into advantages, a strong supply chain, and international market expansion contributed to The Sunrice Group recording group revenue for FY24 of $1.8 billion, CEO Paul Serra says. More than half of group revenue was from overseas markets, and branded products accounted for 70 per cent of sales.
Snapshot
- Revenue: $1.88bn, up 15% on prior corresponding period (pcp);
- EBITDA: $143.9m, up 23% pcp;
- Core debt repaid in full; and
- fully franked dividend of 60 cents per B Class Share.
"These exceptional results demonstrate the strength of our brands and our talented team, as well as our operational excellence in navigating a volatile business environment to deliver further growth globally," Serra said.
Growth in its Australian Rice Pool Business and International Rice segment allowed the company to expand its branded offering in the Middle East, have growth in Europe and the UK, and participate in additional government tenders, primarily in Japan.
Serra said sales pricing strategies helped absorb inflationary impacts. Impacts were also mitigated by previous acquisitions, which had diversified and strengthened its portfolio.
Its extensive supply chain helped the group with sourcing at competitive prices and reacting efficiently to changes in supply and demand.
The group has also been undergoing a review of its growth strategy.
"Significant work on this review has already been undertaken, with multiple work streams scoping both domestic and international growth opportunities that are aligned with our core strengths and brands," Serra said.
Investing in innovation, its diversification pipeline, and in manufacturing to improve infrastructure are priorities.
In FY24, the group had its emissions reductions targets validated to the Science Based Target initiative (SBTi) and drafted a Net Zero Roadmap to meet the group's commitment to Net Zero by 2050.
Serra said the business was committed to “adapting to and anticipating climatic cycles through investment and resourcing in farming practices to increase yield and water productivity to assist with decarbonising rice”.
But Serra forecast “significant headwinds” in FY25, including a softening in sales prices, increasing competition from lower price offerings, unfavourable foreign exchange on imports, and dynamics such as cost pressures in global non-medium grain rice supply, energy and labour.
