Deniliquin’s John Bradford has officially taken over as chair of leading global food company SunRice, following the company’s annual general meeting last week.

Mr Bradford replaces long-serving chair Laurie Arthur, who retires after leading the company for 18 years.

When re-elected to the board in 2023, Mr Arthur said he would only stay to aid the transition between former chief executive officer Rob Gordon and current chief executive officer Paul Serra.

Mr Bradley, who had been Mr Arthur’s deputy chair, has been a SunRice director for about 10 years.

He also chairs Trukai Industries Limited, and brings extensive agricultural experience to the position.

He takes the helm during a positive period for the company.

At the AGM, held in Griffith, the company announced Group revenue was $1.85 billion.

While slightly down on the previous year (by two per cent). There was improved profitability with earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $147.7 million and net profit after tax of $70.7 million - up three per cent and four per cent respectively on FY24.

A fully franked final dividend of 50 cents per B Class Share was declared, bringing the total dividend for FY25 to 65 cents per B Class Share - and eight per cent increase on the previous year.

Despite external challenges, including the lowest average wholegrain mill-out rates in more than five years on the CY24 crop, the Group delivered a naturally determined paddy price of $406 per tonne for medium grain rice.

Stronger than anticipated on-farm yields for the 2025 (CY25) Riverina crop have resulted in a paddy tonne harvest of about 511,000 tonnes, which the company said will support “a full milling program and strong branded sales in the Australian Rice Pool’s premium markets in FY26”.

Building on strong results, SunRice Group anticipates further growth this financial year, driven by innovation, brand investment, and market expansion in Australia, the US, and the Middle East.

A major upgrade to the Riverina Rice Foods facility will enhance capacity and productivity, while diversification of international sourcing remains a priority.

However, challenges persist with competitive pricing pressures, weak currencies (Australian and Papua New Guinea) and inflationary costs may impact margins.

Geopolitical tensions in the Middle East and US policy shifts also pose risks to supply chains and trade.

“It has been two years since I was appointed CEO of the SunRice Group, and I am pleased to report that the business has delivered solid performance in FY25, with improved profitability across the business, supported by the strength of our brands, our people and our 2030 Growth Strategy,” Mr Serra said.

“This year, we celebrate the 75th anniversary of the SunRice Group - an extraordinary milestone in our journey from a single rice mill in the Riverina to the global food business we are today.

“Our history is defined by innovation, resilience, and growth, and these pillars continue to shape the direction of our company’s future.

“Looking ahead, we remain firmly focused on the implementation of our 2030 Growth Strategy, which sets our path to long-term growth, helping us to deliver value for all our stakeholders: by supporting the long-term viability and profitability of the rice industry for our growers and A Class shareholders, while continuing to improve quality of earnings for our B Class shareholders.”

Reflecting on his tenure, Mr Arthur said it had been a “pleasure and privilege” to lead SunRice through significant growth and international expansion, while maintaining strong ties to Australian growers and communities.

He said he will “retire with confidence” in the company’s future direction, and Mr Bradford’s abilities as leader.

Mr Bradford said Mr Arthur had led an impressive path to continue down.

“During his tenure, Laurie has led the SunRice Group as it delivered a number of significant achievements, including the successful listing of the company on the ASX in 2019, and the transformation of the Group into one of Australia’s leading branded food exporters with operations across 10 countries.

“Laurie has also been a tireless advocate for SunRice and the Australian rice industry as it navigated complex water policy reforms throughout his time on the Board.

“I look forward to working with the board and management team as we continue to execute the Group’s 2030 Growth Strategy and create value for our shareholders and growers.”

Deniliquin Pastoral Times Google News Panels

Monday, 24th June 2024

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