rice 1As per recent information available, it has been indicated that the Australia’s rice crop may have shrunk significantly in size last season, but farmer-owned SunRice has managed to defy challenging grain supply issues to post a 5.8 per cent increase in full year net profit after tax to $52 million. Further, in this regard, revenue for the food processing and rice marketing company’s 2015-16 trading year grew almost 2pc to $1.3 billion as compared to 2014-15. In addition, the SunRice has just declared a fully franked total dividend of 33 cents a share for B-class shareholders, up 6.5pc on the previous year’s dividend. Further, the company attributed its improved performance to a continuing favourable mix of sales into premium branded markets. It is now about 90 per cent of Australian rice now sold locally and overseas as branded lines rather than the bulk commodity sales which were prominent until a few years ago.

Furthermore, it has also  been observed that strong growth in the company’s international rice and rice food segments were also highlighted  the period although sliding currency trends in Australia, and particularly Papua New Guinea, eroded some offshore earnings gains. Thus ,the  business performed well across a range of markets, with the Middle East, Asia and Australia and New Zealand businesses delivering positive market share and volume results, as stated by the Chief executive officer Rob Gordon. It was also explained that the new international supplier arrangements contributed to approximately 300,000 tonnes of rice being sourced from Asia and the US, which allowed us to service and maintain our expanding branded markets as told by Mr Gordon .The Financial Year -2016 (ending April 30) results clearly demonstrated an increased revenue scale and profitability levels as experienced in FY-2015 which have been maintained as a result of the strategy that was implemented in FY-2012.

In this matter, it was further, narrated that this strategy focuses on premium branded markets and builds capacity and capability across the organisation. It has also increased the group’s resilience in a dynamic and challenging operating environment. A $24m capital expenditure program in 2015-16 largely focused on improving SunRice’s processing capacity and efficiency, and is expected to lift production yields and quality. Final paddy payments to growers for last year’s rice crop (C15) will be $404 a tonne for medium grain (Reiziq) – a 2.3pc year-on-year increase, and $534/t for Koshihikari – up 1.7pc. As for as for the  shareholders the past trading year’s shareholder dividend represented a payout Shanti Agro Industries Pvt. Ltd.ratio of 38pc and a dividend yield of 7.7pc, based on a B-class share price of $4.30  on the closing price of June.

 

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