Queensland Sugar, GHD Group, PharmaCare and other Top 500 outliers

A selection of impressive performers from Australia’s Top 500 private companies.

From left: GHD Group’s Ian Shepherd, St John of God’s Michael Stanford and PharmaCare’s Vincent Tan.

A selection of impressive performers from Australia’s Top 500 private companies.

Queensland Sugar. Revenue: $1.87 billion. Staff: 156. Industry: Livestock and other agricultural supplies wholesaling. Chief executive: Greg Beashel. Rated: 13

The company responsible for most of Australia’s raw sugar exports moved up two places this year to number 13. IBISWorld’s Julia Saladino says QSL’s 31.2 per cent increase in revenue to $1.87bn was attributable to a change in contractual arrangements with its supplying millers. “The contract changes resulted in all raw export sugar produced by their suppliers now being marketed through the QSL pooling system,” she says. “The pooling system had three million tonnes last financial year and that has increased to 3.5 million tonnes of raw sugar due to the changes. The increase in the amount of sugar received has flowed to its revenue.” QSL works on behalf of seven millers and about 4000 Australian canegrowers. It also operates six bulk sugar terminals in Queensland.

GHD Group. Revenue: $1.55 billion. Staff: 7800. Industry: Professional, scientific and technical services. Chief executive: Ian Shepherd. Rated: 17.

The global professional services company climbed 21 spots following its merger with North American engineering group Conestoga-Rovers & Associates. The deal, completed in July, broadened GHD’s global footprint and helped diversify its business, bringing in car manufacturers Ford and General Motors as major clients. GHD was established in 1928 and operates in Asia, Australia, Europe, North and South America, and the Pacific region. It is highlighted on this year’s Top 500 list as boosting its revenue by 64.5 per cent to $1.55bn. GHD is principally known as an engineering firm that has been pursuing a vertically-integrated strategy to increase market share. It has captured some of its wealth from the mining boom and associated infrastructure investment. It employs more than 7800 people in more than 200 offices. It operates in the global markets of water, energy and resources, environment, property and buildings, and transportation. It provides engineering, architecture, environmental and construction services to private and public sector clients. Australia’s $41.2bn engineering consulting industry has significantly benefited from the mining boom over the past five years. However, industry revenue is forecast to decline over the next year as investment in mining continues to slow. A recovery in sector revenue is expected in 2016-17, driven by substantial anticipated government investment in transport infrastructure, and continued investment in the national broadband network.

St John of God Health Care. Revenue: $1.3 billion. Staff: 7373. Industry: Hospitals. Chief executive: Dr Michael Stanford. Rated: 21.

The national not-for-profit Catholic healthcare provider recorded a 12.5 per cent revenue jump to $1.3bn to push it up two levels to number 21. Australia’s third largest private hospital operator, it runs 13 hospitals along with pathology, home nursing and social outreach services, throughout Australia, New Zealand and the Asia-Pacific. It says it returns all profits to the communities it serves by updating and expanding its facilities and technology, and acquiring new services.

PharmaCare Group. Revenue: $361.2 million. Staff: 290. Industry: Pharmaceuticals wholesaling. Chief executive: Vincent Tan. Rated: 142.

A successful expansion overseas, particularly in Europe and China, drove a revenue increase at the company, which climbed to number 142. Growth in Europe has been attributed to increased demand and favourable exchange rates, while growth in China is said to be due to growing demand for supplements. It recorded a revenue jump of 16.5 per cent to $361m. The company’s brand portfolio includes names such as Brut, Norsca, Nature’s Way, Sambucol, Bioglan, Ease-a-Cold and Rosken. The company, established in 1923, has grown into a diversified food and agribusiness with revenues of more than of $420m in 2014-15. Increased sales of seafood and pork drove its 18.7 per cent revenue growth and pushed from 142 to 114. CMG describes itself as a market leader in the domestic pork and rendering sectors with strong supply chains and an established export market to 60 countries. CMG has always been a family company and its shareholders are second, third or fourth-generation family members. Its products are distributed from state-of-the-art processing facilities in Western Australia and Tasmania to retail and wholesale clients across Australia. CMG has a 10.4 per cent market share of $1.1bn Australia’s pig farming industry, which is expected to grow moderately over the next five years as production volumes continue to expand and pig meat prices rise marginally. Over the five years through 2019-20, industry revenue is forecast to grow by an annualised 3.8 per cent to reach $1.3bn.

Craig Mostyn Group. Revenue: $420 million. Staff: 570. Industry: Food product manufacturing. Chief executive: David Lock. Rated: 114.

The company, established in 1923, has grown into a diversified food and agribusiness with revenues of more than of $420m in 2014-15. Increased sales of seafood and pork drove its 18.7 per cent revenue growth and pushed it from 142 to 114. CMG describes itself as a market leader in the domestic pork and rendering sectors with strong supply chains and an established export market to 60 countries. CMG has always been a family company and its shareholders are second, third or fourth-generation family members. Its products are distributed from state-of-the-art processing facilities in Western Australia and Tasmania to retail and wholesale clients across Australia. CMG has a 10.4 per cent market share of Australia’s $1.1bn pig farming industry, which is expected to grow moderately over the next five years as production volumes continue to expand and pig meat prices rise marginally. Over the five years to 2019-20, industry revenue is forecast to grow by an annualised 3.8 per cent to reach $1.3bn.

Bowens Timber & Hardware. Revenue: $282 million. Staff: 800. Industry: Basic material wholesaling. Managing director: John Bowen. Rated: 191.

The residential construction boom and good performance by its stores boosted Bowens’ revenue by 18 per cent to $282m over the year. The historic company jumped from 210 to 191, a lift helped by its strong performance in commercial construction that fuelled demand for its prefabricated wood products. The $19.5bn hardware and building supplies retailing sector, dominated by Wesfarmers, is expected to have an annualised revenue growth of 2.3 per cent over the next five years to reach $21.8bn, boosted by upward trends in capital expenditure on private dwellings. However, IBISWorld warns that in the short-term retailers are likely to face decreased demand due to deterioration in consumer sentiment and household discretionary income. With competition among the major players expected to remain a crucial part of the industry’s structure over the next five years, smaller hardware retailers could find it difficult to remain competitive.

Pacific Petroleum. Revenue: $195 million. Staff: 55. Industry: Basic material wholesaling

Managing director: Michael Hollows. Rated: 291.

The company’s expanding business over the year saw it shoot up 42 spaces to 291. It has expanded into NSW and Victoria in the past 18 months and its lubricants business division has enjoyed further expansion in its home state of Queensland. The company also continued to open new distribution sites, helping boost its revenue by 32.7 per cent over the year to $195m. A wholly Australian owned and operated business, Pacific Petroleum is an authorised ExxonMobil distributor for fuels and an authorised importer and distributor of Phillips 66 and Shell lubricants. The business was founded in 1969, when Ivan Hollows started as an Esso fuel distributor in the central Queensland town of Wandoan. A series of businesses led to the establishment of Pacific Petroleum in 1994. The company operates in a $1.2bn industry dominated by BP, Caltex and Shell licensee Viva Energy. The industry is expected to grow modestly over the next five years as demand for fuel products remains steady. Revenue is forecast to increase at an annualised 2.2 per cent to $1.3bn.