SUNRICE has recorded a large jump in group revenue of $1.3 billion for its 2022 financial year.
This figure was up 30 per cent compared to the same period last year.
The 2022 rice crop has also now been harvested and, at 675,000 paddy tonnes is the largest in five years.
Ahead of planting of the next Australian Riverina crop, seasonal conditions, water availability and water pricing remain highly favourable for growers and the company.
Water storage levels are also at their highest point in this part of the season for more than 20 years.
SunRice's current share price on the ASX was sitting at $6.88 on Wednesday afternoon, which was down slightly.
IN OTHER NEWS:
SunRice chief executive officer Rob Gordon said described the financial results for the 2022 financial year as "outstanding".
"The business has delivered an outstanding result after two years of near record-low Australian rice production - a period in which the company diverted resources to maintain supply of key markets with rice from other origins, while still investing in new acquisitions and progressing other organic growth initiatives," he said.
"This improved financial year 2022 result was the consequence of the return of Australian rice to key markets, the accretive contribution of recent acquisitions, and the group's multi-origin, multi-price point international rice supply capability."
The results were driven by a range of factors, including the increase in Riverina rice production, which allowed the Australian rice pool business to absorb its share of overhead costs after two years of losses hampering group profitability and which in turn improved the cost base of the rice food segment.
"However, there are substantial challenges - most notably the ongoing disruption to global shipping and escalation in freight costs and worsening inflationary pressures on key business inputs," Mr Gordon said.
"We remain focused on utilising our strong balance sheet to explore further value- accretive acquisitions ..."
Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content:
Sign up for our newsletter to stay up to date.