THE numbers are in for SunRice, reflecting on what will be a challenging year for the company.
The company, whose headquarters are based in Leeton, has released its financial results for the six months ended October 31.
Next profit after tax for SunRice was $13.9 million, which was a 42 per cent decrease compared to the same period last year.
Consolidated revenue for the company reflected more positive figures, sitting at $582.9 million, marking a seven per cent increase when looking at the corresponding time-frame for the previous year.
Late last year SunRice announced it would be cutting up to 100 jobs from its milling operations in Leeton and Deniliquin.
SunRice chief executive officer Rob Gordon said it was no secret the company was in for some difficult times.
“Prevailing global rice market trading conditions and exchange rate movements, which are both beyond SunRice’s control, impacted on the group’s half yearly revenue and profitability,” he said.
“SunRice’s seven per cent revenue increase compared to (the previous period) was due to a combination of factors.
International rice prices firmed during the period by around 30% and exchange rate movements enhanced the value of Australian rice exports.”
Despite stronger revenue, SunRice profitability was undermined by several factors.
The firmer rice prices that benefited revenue also increased the cost of some of the company’s key internationally sourced export varieties.
However, the Rice Food, CopRice and Riviana businesses all experienced profitability growth during the half.
CopRice, also based in Leeton, performed particularly well, having benefited from the increasing demand for stockfeed with revenue increasing by 49 per cent.
“Despite poor milling yields during the period, the paddy price range to be paid by the rice pool for base grade medium grain (Reiziq) remains $360-$400/tonne,” Mr Gordon said.
“Following the overwhelming approval of shareholders at the AGM in September, SunRice looks forward to listing on the ASX in early 2019 and the opportunity this will provide to raise equity capital in the future.
“Our guidance for net profit after tax for (the financial year) remains between $30 to 35 million.”