After-tax profit of $30.6 million for SunRice

SunRice has posted a profit 56 per cent greater than this time last year, fuelled by a weakening Aussie dollar and international market expansion.

SunRice Group has announced a net after-tax profit of $30.6 million for the half-year period ending on October 31.

The financial results, announced during a shareholder meeting on Friday morning, follow a record net profit after tax announcement in June this year of $54.8 million.

SunRice chief executive officer Paul Serra started in the role in August and said the company’s improvements in revenue and profitability continued to be strong.

He said the net profit after tax of $30.6 million represented a 56 per cent increase compared to this time last year.

A weakening Australian dollar and international market growth expansion helped SunRice deliver hefty profits.

Mr Serra said supply chains continued to normalise after the Covid-19 pandemic.

“We are expecting continued growth in both revenue and profitability for the second half of the year,” he said.

A rice crop in the Riverina. Picture: Emma Jane Industry

At a grower level, he said the paddy price range was currently $410 to $450 a tonne.

Mr Serra said the company had also worked with Rice Breeding Australia to identify traits to improve cold tolerance in rice. These cold-tolerant varieties were also expected to contribute to water efficiency.

SunRice chief financial officer Dimitri Courtelis said the company’s closing price on the Australian Stock Exchange was $6.42.

Mr Courtelis said SunRice expected a fourth year of abundant Australian rice production.

The stockfeed section of the SunRice business, CopRice, also experienced continued growth, with revenue climbing 16 per cent to $129.5 million.

Mr Courtelis said despite successes, CopRice faced challenges regarding wheat quality issues, which affected horse feed volumes.

There had also been a contraction in the New Zealand stockfeed market for intensive livestock due to lower milk prices.