Consolidated revenue, on the other hand, increased to $1.2 billion. Although, the increase was only by 1.3 per cent.
In releasing its financial results last week, the leading food company said its net profit after tax was $32.8 million.
While the company said it was ‘‘slightly above the midpoint of guidance’’, but is a 27 per cent reduction on the previous financial year.
SunRice said the financial results were driven by a combination of several factors that included:
●Significant challenges to profitability from negative foreign exchange impacts, particularly in the International Rice segment;
●Strong performance in CopRice’s beef and sheep feed categories;
●Benefits from capital investment programs on operational performance;
●The continued success of the business’ international sourcing program albeit with cost increases across some sourced rice versus prior year; and
●The continued growth in diversified earnings from CopRice and Riviana.
In the Rice Pool Business, strong pricing and the placement of SunRice products into higher returning markets internationally saw a record pool price of $411.19 per tonne paid in crop year 2018 (C18).
The company said it demonstrates the strength of SunRice’s ability to market Australian grown rice and rewarding growers and was achieved despite the lower C18 crop and reduced production volumes due to poor C18 paddy quality.
The previous highest pool price was $403/tonne paid in C15. The record does not include the C16 guaranteed fixed price of $415/tonne.
A fully franked dividend of 33 cents per B Class Share was also announced by SunRice last week.
SunRice CEO Rob Gordon said despite tough conditions, continued efforts to achieve positive outcomes for the company and its shareholders have continued.
‘‘Financial Year 2019 (FY2019) has been a significant year for SunRice, including listing on the Australian Securities Exchange and continuing to pursue our 2022 Growth Strategy, cementing the SunRice Group’s position as a truly international and diversified ast moving consumer goods business,’’ Mr Gordon said.
‘‘Our achievements have been reflected in our ability to deliver net profit after tax on guidance despite challenging conditions, which undermined profitability. These included adverse foreign exchange movements of around $15 million compared to FY18 across International Rice, Rice Food and Riviana, particularly in the first half.’’
Mr Gordon said despite these challenges, SunRice continued to successfully accelerate its 2022 Growth Strategy.
‘‘During the year, we have opened new markets in Europe, commenced trading in Libya and re-established distribution relationships in Syria, as well as continuing to innovate and grow our product portfolio,’’ he said.
‘‘In Vietnam, the acquisition and development of a world class milling and packing facility in the Mekong Delta will set a new standard for Vietnam rice processing and assure our customers that the quality standards we apply to our Australian product can be replicated internationally.
‘‘We secured an affordable rice supply for our Pacific markets from Asia, while at the same time backfilling the shortfall created by the lower C19 Australian crop with high quality product from multiple locations.
‘‘While there is no escaping the drought we are facing in the Riverina, we continue to invest in the region. The $11 million invested in the stabilised bran processing plant in Leeton will add value to a rice milling by-product, supporting product innovation for the Rice Food business and CopRice.’’
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