Ridley Corporation shares drop as shareholders protest managing director incentives
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The news: Shares in Ridley Corporation fell in afternoon trade following the release of a trading update that showed “modest growth” in its underlying business while shareholders protested performance rights for its managing director.
The numbers: At 3:14pm AEDT, Ridley shares had slipped 3.6% to $2.67.
Ridley shareholders ultimately passed the resolutions to issue the performance rights to its managing director but 31.95% voted against the rights under the special purpose retention incentive plan and 40.62% voted against the rights under the stretch performance criteria.
The context: In a trading update ahead of its annual general meeting, Ridley flagged that it expects earnings growth in FY26 on “modest growth in its underlying business (Bulk Stockfeeds and Packaged and Ingredients segments) despite 1H headwinds in Ingredient Recovery” and earnings in line with the investment case for the fertiliser segment acquired from Incitec Pivot.
The ingredient recovery segment faced “margin pressure” from “low protein meal prices as inventory surpluses remain in the market” as well as short-term supply constraints. The fertiliser segment also registered one-off items associated with acquisition costs.
