SunRice H1 FY26 Profit Climbs to $36.6M; Revenue Dips to $884M
Ricegrowers Limited (SunRice) reported a 14.5% rise in half-year profit despite a 3.1% revenue decline, driven by improved margins and strategic growth in key markets. The company also increased its interim dividend by a third, signaling confidence in its 2030 Growth Strategy.
- Profit after tax up 14.5% to $36.6 million
- Revenue down 3.1% to $884 million
- EBITDA margin improved to 8.1%
- Interim dividend raised to 20 cents per B Class Share
- Strategic growth in Middle East, US, and Australia offsets Pacific market challenges
Solid Earnings Growth Despite Revenue Pressure
Ricegrowers Limited, trading as SunRice, delivered a robust financial performance for the half-year ended 31 October 2025. The company reported a 14.5% increase in net profit after tax to $36.6 million, even as revenue slipped 3.1% to $884 million. This divergence underscores SunRice's success in improving profitability through enhanced margins and operational efficiencies amid a challenging top-line environment.
Margin Expansion and Cost Efficiencies Drive Results
SunRice’s EBITDA rose 5% to $71.3 million, lifting the EBITDA margin from 7.4% to 8.1%. Key contributors included a lower cost of US rice, normalization of global rice prices following the lifting of export bans, and a recovery in government tender pricing. The company also benefited from cost and operational efficiencies, alongside a more favourable business mix focused on higher-value branded markets.
Strategic Growth Offsets Market Challenges
Growth in strategic markets such as the Middle East and the United States, along with strong brand momentum in Australia through Toscano and SavourLife, added approximately $25 million in revenue compared to the prior period. However, these gains were partially offset by a nearly $50 million decline in Pacific markets and lower tender volumes, where SunRice is recalibrating its business to enhance future profitability.
Dividend Increase Reflects Confidence
Reflecting its solid earnings and cash flow position, SunRice declared a fully franked interim dividend of 20 cents per B Class Share, up 33% from 15 cents in the prior corresponding period. The company’s Dividend Reinvestment Plan remains in operation, supporting shareholder value creation amid ongoing investment in brand building and talent acquisition aligned with its 2030 Growth Strategy.
Balance Sheet Strength and Outlook
SunRice improved its net debt position to $169 million and reduced gearing to 20%, supported by disciplined cash flow management and a reduction in net working capital. The Group reaffirmed its FY26 outlook for growth in both revenue and profit, while acknowledging ongoing headwinds including currency volatility, competitive pressures, and geopolitical uncertainties. The company continues to advance its strategic initiatives, including operational upgrades and sustainability programs, positioning itself for long-term growth.
Bottom Line?
SunRice’s half-year results highlight resilience and strategic progress, but investors should watch for ongoing market and currency risks ahead.
Questions in the middle?
- How will SunRice’s rebasing of Pacific operations impact future profitability?
- What are the implications of the updated Paddy Price range for growers and margins?
- How might geopolitical tensions and currency fluctuations affect SunRice’s global supply chain?
