SUNRICE believes it is on the right track when it comes to the company's financial performance after releasing its latest figures to the public.
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The business has released its financial results for the period ending October 31, with SunRice Group chief executive officer Rob Gordon saying the company was moving in the right direction.
"After successfully navigating one of the most difficult periods in our history, with the dual challenges of COVID-19 and two consecutive years of extremely low Riverina production, I am pleased we are now seeing a strong recovery in financial performance," he said.
"Despite the challenges of the past two years, we have continued to make investments in strategic and organic growth initiatives, and a number of these are now realising benefits.
"We expect our recovery to accelerate throughout the remainder of f(the financial year), but we continue to face a number of challenges, including unprecedented escalation in freight rates and shipping disruption due to COVID-19, and operational challenges in CopRice which could impact the scale of this recovery."
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Mr Gordon said the first half of the current financial year was driven by a number of factors.
These included:
- The recovery of the Australian rice pool business, which was able to absorb its share of overhead costs as a consequence of the increased crop of 417,000 paddy tonnes harvested earlier in 2021. The larger rice crop underpinned the return of larger volumes of Australian rice to premium export markets across the Middle East and Asia in the first half of the 2021-22 financial year, which was in contrast with the past two years.
- The continued positive performance of the international rice segment, reflecting the SunRice Group's multi-origin strategy and understanding of consumer preferences, enabling it to offer high-quality products for each of its brands at multiple price points.
- Accretive contribution of the recently acquired KJ&Co Brands in the Riviana Foods segment,
- and organic growth in its Always Fresh, Fehlberg's and Roza's Gourmet brands across most categories via innovation and increased ranging with retailers.
- Upturn in performance in the Rice Food segment, particularly in microwave products.
Mr Gordon said SunRice anticipated in the second half of the financial that there would be an acceleration in the recovery that started in the first half.
He said SunRice would continue to look for synergies with its recently acquired businesses, so it can deliver additional benefits and contribute positively to consolidated earnings.
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