![SunRice managing director, Paul Serra. SunRice managing director, Paul Serra.](/images/transform/v1/crop/frm/32XghFRykTWK8psrWNhdBMC/cabbe0e1-4f52-46c1-8b85-5359629d7137.jpg/r0_0_2753_1881_w1200_h678_fmax.jpg)
Farmer-owned SunRice Group has paid off its core debt and posted a 24 per cent jump in full year profit after tax to $68.2 million following a year of record revenue.
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Despite increasing inflationary pressures in local and offshore markets, branded sales growth helped revenue climb 15pc to almost $1.9 billion.
The domestic and international rice processor, trader and food products business will end the 2023-24 year pushing its total dividend payment to B-class shareholders to a record fully franked 60 cents a share, including a 40c final dividend and a five cent special dividend.
SunRice's suite of businesses in NSW, Victoria and Queensland, range from its rice and meal products lines, to Riviana's Mediterranean foods and food service business and stockfeed company, CopRice.
However, more than half of the group's revenue was generated outside Australia in 2023-24 from operations in New Zealand, the Middle East, the US, Papua New Guinea, the Pacific Islands and Asia.
About 70pc of sales were attributed to branded products.
With the big profit result under his belt, managing director, Paul Serra, has flagged SunRice was scoping new domestic and international growth options which could align with its rice processing and wider food brand strengths.
The company's growth strategy was being reviewed to find new opportunities, "as we look to evolve and build on our momentum".
Mr Serra said the past year's results were exceptional and demonstrated the strength of the company's brands.
The group had navigated a volatile business environment during the past year, but was preparing for even more significant headwinds in the next 12 months, including tougher competition from lower priced product and unfavourable foreign exchange costs on imports businesses, which were particularly relevant to Riviana and Trukai in PNG during 2023-24.
Upbeat crop outlook
However, SunRice's production outlook was buoyed by prospects for another substantial Australian rice crop next year, based on current water availability expectations.
It has just received about 618,000 tonnes of grain from the latest solid-yielding southern NSW rice harvest.
The past two seasons have left the company with full carryover grain levels which will assure supplies to local and export markets.
On the other hand, after a recent global rice production downturn caused by northern hemisphere drought conditions, overseas markets were now experiencing increased volumes, too, which Mr Serra said would weigh on next year's returns.
Global prices were softening, with the impact being felt most notably in market categories where consumers were facing increasing cost of living pressure.
Discretionary spending was shifting to lower priced products.
The prevalence of lower quality scores from the recent autumn harvest in Australia would also hurt earnings potential.
As a result, the recent season's paddy price payments to growers would remain between $370 and $430 a tonne for medium grain.
Disruption to the global shipping industry, particularly in the Red Sea region, was another challenge ahead, as were energy and labour costs and other cost pressures for non-medium grain rice overseas.
The group would continue to focus on branded product sales given brand revenue growth and pricing strategies had been valuable in helping counter inflationary impacts in the market.
As an ambitious and resilient global branded food business, the SunRice Group is well positioned to continue to grow and expand
- Paul Serra, SunRice
Mr Serra, who took the helm at SunRice last year, said the strong brands portfolio, product mix and improved operating plant efficiencies had combined to underpin the past year's volume growth.
SunRice had expanded its branded product offering in the Middle East, grown into Europe and the United Kingdom, and picked up additional government tenders, primarily in Japan.
"As an ambitious and resilient global branded food business, the SunRice Group is well positioned to continue to grow and expand," he said.
"We are investing in our brands and remain focused on ensuring our innovation and diversification pipeline for our products caters to both existing and new customer needs across the globe.
"We are investing in manufacturing to improve infrastructure and adapting to and anticipating climatic cycles by investing in domestic and international farming practices to increase yield and water productivity to assist with decarbonising rice."