IT MAY have been a decrease on last year, but Leeton-based company SunRice still managed to make more than $1 billion in consolidated revenue this financial year.
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The company has released its financial results for the year ended April 30, which shows the $1.1 billion in consolidated revenue for the group.
This was a decrease of 12 per cent, while the business also had a drop in its net profit after tax, which was down 44 per cent year-on-year to $34.2 million.
The company said the financial results were driven by a combination of several external factors, including the lower Riverina rice crop, lower medium grain rice prices due to increased global production and stockpile levels and negative trends in key SunRice markets.
There were also weaker trading conditions experienced by CopRice and Riviana.
SunRice chief executive officer Rob Gordon remained positive.
“After five years of improving financial performance and market expansion, this year a range of external factors combined to impact on the business,” he said.
“However, rather than focus on defensive tactics to counter adverse market conditions, we accelerated our business strategy and initiatives to strengthen SunRice for the future.
“As a business, we had to supply enough SunRice products globally to satisfy total demand, which equated to over four times the size of the much-reduced 2016 Riverina rice crop.
“We intensified our international sourcing efforts. Most notably, we successfully established a sustainable supply chain from Vietnam that contributed a significant 320,000 paddy tonnes to the total 500,000 paddy tonnes we sourced around the world.
“Notwithstanding challenging market conditions, the business delivered profit within guidance, an 8 per cent fully franked dividend yield to shareholders and a guaranteed paddy price of $415 per tonne.”
Net profit before tax increased by $12.1 million,which was mainly driven by a “one-off” item following the acquisition of the minority shareholders in SunFoods.
The company’s results will be presented at the Ricegrowers Limited annual general meeting on August 25 at the Jerilderie Civic Hall from 10.30am.