SunRice’s 2018 financial year profits have smashed the 2017 statistics and continues to lead the wave of profitability across the rice growing industry.
“SunRice’s success reflects the overall profitability of the majority of the rice industry. If SunRice goes well, the paddy prices increase,” Rice Growers Australia’s Executive Director, Graeme Kruger said.
SunRice’s revenue for FY18 was $1.2 billion, a 6% increase to FY17 and achieved a net profit after tax of $45.1 million, a 32% increase compared to the previous year.
The increase in revenue was predominantly driven by: the largest Riverina rice crop in three years; sourcing from offshore markets; a rebound in rice prices after a 10-year low; and a recovery in profitability from Trukai, CopRice and Riviana.
“This is an exciting time for SunRice and the Australian rice industry, which is the cornerstone of our ongoing success,” SunRice CEO, Rob Gordon said.
“The business has the strength, resilience and flexibility to weather cyclical commodity downturns, FY18 was characterised by rebounding profitability and reinvigorated growth across the Group.”
SunRice’s main strategy is to capitalise on global consumer food trends and increase value-added opportunities. The establishment of strategic partnerships with Japan and securing a vertically integrated supply chain with Vietnam, which currently represents over 5% of Australia’s rice exports.
“We are expanding our Low GI range to help address obesity and diabetes, taking advantage of the global demand for sushi by selling more premium short grain rice and continuing to invest in healthy snacking ranges,” Mr Gordon said.
According to Mr Gordon the provenance of Australian rice is amongst the best in the world.
“We look forward to progressing our strategies as we seek to build an enduring global company to benefit generations to come.”