Ridley Corporation shares soar after posting a 8.7% increase in full-year profit
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More news: Ridley Corporation shares lifted in early afternoon trading after the animal feed business posted a 8.7% increase in full-year profit.
At 12:09pm AEST, shares in Ridley Corporation lifted 7.9% to $3.14. The stock is up 16.3% in the year to date.
Ridley Corporation full-year profit rises 8.7% to $43m
The news: Animal nutrition supplier Ridley Corporation has reported a full-year profit of $43.3 million, up 8.7% on the FY24 figure of $39.9 million as the company restructured and upgraded facilities.
The numbers: The FY25 profit figure is also higher than the market consensus estimate of $42.7 million, according to Visible Alpha.
Full-year EBITDA was $97.8 million, 8.6% higher than $90 million in the previous year and ahead of the consensus estimate of $95.8 million.
A final dividend of 5 cents per share was declared putting the full-year dividend at 9.75 cents. This is up on the previous year’s 9 cents per share and greater than the 8.5 cents per share consensus estimate.
The context: Ridley said it "exited lower returning operations (including the phased withdrawal from extruded aquafeed) and strengthened organisational capability". It also sold the Wasleys Feedmill in South Australia for $22 million.
Organic growth and bolt-ons included the completion of the Clifton Feedmill debottlenecking project in Queensland for $7.9 million and acquired the Carrick Feedmill in Tasmania for $8.1 million.
In May, the company entered binding arrangements to acquire Dyno Nobel's, formerly Incitec Pivot, fertilisers business for $300 million with put/call options to acquire the Geelong property for $75 million. The acquisition is on track for completion at the end of the third quarter of 2025.
Looking to FY26, Ridley said that it expects earnings growth across its packaged and ingredients segment, bulk stockfeeds segment and fertiliser segment following acquisition. Ridley is also targeting a 50% to 70% dividend payout ratio.
