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SGL - Ricegrowers Limited

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JohnDe said:
Several months ago, I added SGLLV in my Alerts at (at the time), a ridiculously low price, today it went off.

What is happening?

I won't be buying anytime soon.
Click to expand...
i bought a handful in November 2021 ( sub $6.30 )

would be looking for around the $6 to $6.15 to add more

being illiquid is less important to me than staying viable ( and paying divs. )

didn't see any news about the company , only 8055 shares changed hands today , could be somebody spooked by exposure to the Asian economy

but cheers

might be time to glance at it more frequently
 
The Rice Harvest season will be getting underway shortly.
It won't be a long season, as according to ABARES
Given that rice is flooded for a good part of its life cycle, seems odd that floods have drastically reduced rice plantings in NSW, but if you can't get your planting/tillage equipment on to fields, nothing gets planted.
Sold the small parcel for loss, though the dividends have partly offset the loss.
Mick
 
cheers , for the heads up

am roughly break-even here ( ignoring the div. returns )

will be watching for a top-up opportunity ( i don't have a big parcel , even if i top-up successfully )

so for has a 'bottom-drawer sticker' on it for me
 

I presume the issue is controlled flooding versus washed away flooding.
 
washed away or water of uncontrolled quality ?? ( full of garbage ,unwanted seeds etc etc ) or both .

but all in all weather events are part of what agriculture is about , with a relatively illiquid stock ( unlike say SHV ) , this is one stock you do NOT want to be a forced seller

this is more for stayers ( and opportunist toppers )

i would be more wary of rising costs going forward
 
Paul Serra appointed CEO of the SunRice Group
Following a comprehensive global search process, the Board of Ricegrowers Limited (SunRice) today
announced that Mr Paul Serra will succeed Mr Rob Gordon as Chief Executive Officer and Managing Director
of the SunRice Group (ASX:SGLLV).
Mr Gordon announced his intention to retire in December 2022 and will step down as CEO and Managing
Director of SunRice on 23 August 2023 at the conclusion of the company’s Annual General Meeting.
Mr Serra will join SunRice in early July to allow for an orderly leadership transition before commencing his
role as Chief Executive Officer and Managing Director on 23 August 2023. He joins SunRice from the role of
Managing Director North America (USA and Canada), Olam Food Ingredients (“ofi”), New York. Prior to joining
ofi, Mr Serra held a number of senior executive roles at the Campbells Soup Company, and was previously in
operational roles at Arnotts Biscuits ANZ. Mr Serra has demonstrable experience in delivering financial
outcomes in the agribusiness, food ingredients and FMCG sectors and brings to the role of CEO of SunRice an
in-depth experience in supply chain, people leadership, business transformations, health and safety and
operations. Mr Serra holds an honours degree in engineering from The University of Queensland.
Speaking to the appointment SunRice Chairman Laurie Arthur said:
“Paul is an accomplished executive whose leadership skills and global experience in the growth and
transformation of complex and diverse organisations will provide the right mix to continue to build
on the SunRice Group’s growth strategy. The Board is confident that under Paul’s leadership SunRice
will be well positioned to build on our core strengths and continue to create value for both classes of
shareholders.
Paul’s appointment reflects his deep commercial and operational experience, leadership capabilities
and track record at both ofi and Campbell Soups. Together with the Board I am delighted to announce
his appointment today.”
Commenting on his appointment, Mr Serra said:
“It is a great honour and privilege to be appointed as the CEO and Managing Director of SunRice, a
leading global food group and one of Australia’s leading branded food exporters, at such an important
time in the Group’s evolution as it continues its expansion both in Australia and overseas.
I look forward to continuing to build on the underlying strength of the SunRice business and delivering
a strategy to create long term value for the Group, in partnership with the SunRice’s growers,
shareholders, customers, communities and its people.
The key terms of Mr Serra’s appointment are summarised in Attachment A and a short biography is provided
in Attachment B.

Attachment B

Paul Serra Biography
Bachelor of Engineering, Mechanical Engineering (Honours), University of Queensland
Paul joined ofi as President & Global Head of Operations (Chief Supply Chain Officer) in 2020 before being
appointed as Managing Director of North America (USA, Mexico and Canada) in August 2022. In this role Paul
led a team of around 4,000 employees across 22 food manufacturing facilities.
He previously held senior executive roles at Campbell Soup Company after starting his career in operational
roles at Arnotts Biscuits.
Paul has deep experience in manufacturing, operations, supply chain, health & safety, sales, marketing, M+A
and business transformation having worked in roles across Australia, South East Asia and the USA.

DYOR

i hold SGLLV

i added more yesterday , time will tell if that was lucky or not so lucky

WARNING this can be illiquid
 
SunRice Group FY2023 Full Year Financial Results:
Delivering strong financial performance and growth
SunRice delivered a net profit after tax of $54.8 million for FY2023, up 12% on FY2022
• Record Group revenue of $1.64 billion, up 23%
• EBITDA of $117.0 million, up 28%
• Record naturally determined CY22 paddy price of $461 per tonne for medium grain Reiziq
• Record fully franked total dividend of 50 cents per B Class Share, including 40 cent final dividend,
with a payout ratio of 60% and a dividend yield of 8.1%
• Impressive financial performance was underpinned by the strength of the Group’s business model,
ongoing execution of the Growth Strategy and abundance of Australian rice
Outlook remains positive as we expect to continue to grow both revenue and profit in FY2024 and
expect ongoing abundant supply of Riverina rice into FY2025
Investor webcast to be held at 9:30am AEST on Friday 23 June 2023 (details below)
The SunRice Group today released its financial results for the period ended 30 April 2023 (FY2023) with
Group CEO, Mr Rob Gordon, commenting:
“FY2023 was an outstanding year for the SunRice Group, in which we delivered the highest Group
revenue, naturally determined paddy price and total fully franked dividend in the company’s 73-year
history, despite a challenging inflationary environment.
“This impressive financial performance reflects the strength and resilience of our strategy and
business model, and the focused efforts of our people to deliver value for both classes of shareholders.
“We also made further progress against our Sustainability Strategy and its six focus areas, including
launching the Australia Vietnam Mekong Delta Sustainable Rice Value Chain Project and becoming a
founding member of the National Plastics Recycling Scheme in Australia.
“The Group is well positioned to continue its momentum in FY2024. We remain focused on maintaining
a strong balance sheet, continuing to explore a well-developed pipeline of potential strategic
opportunities, and reinforcing our established branded position.”
The FY2023 Financial Results were driven by a range of factors including:
• The abundance of Australian rice, with the CY22 Riverina rice crop 65% larger than CY21, supporting
strong sales volumes in key premium markets and expansion in new and existing territories
impacted by drought. It also improved the profitability of the Group’s segments that rely on inputs
from the Australian Rice Pool Business;
• Sales price increases across most of the Group’s segments and product categories, which helped to
offset inflationary pressures. Revenue growth was also supported by favourable changes in product
mix in some markets;
• The continued recovery of the CopRice segment which returned to profitability in FY2023, driven by
the positive impact of turnaround actions implemented, notably in the Australian ruminant business
and companion animal portfolio, and the first full year contribution of Pryde’s EasiFeed, which was
acquired in January 2022;
• On the downside, the escalation in freight and distribution costs due to ongoing disruption to
domestic and international supply chains; and
• Widespread inflationary pressures, which drove a material increase in key input costs including raw
materials, labour and financing.
ASX Announcement
Final dividend
A total fully franked dividend of 50 cents per B Class Share, representing a 60% payout ratio, was declared
for FY2023, comprising:
• Interim dividend of 10 cents per B Class Share declared on 15 December 2022; and
• Final dividend of 40 cents per B Class Share declared on 22 June 2023.
Based on the closing B Class Share price as at 30 April 2023 of $6.20, the total fully franked dividend of 50
cents per B Class Share represents a yield of 8.1%.
The CY22 record paddy price and FY2023 dividend once again demonstrate the Group’s ongoing focus on
delivering value to both A and B Class Shareholders and the complementary nature of the Rice Pool and
Profit Businesses.
Our outlook
The strong revenue momentum observed in FY2023 is expected to continue into FY2024, albeit likely at a
more moderate pace. It is anticipated that this momentum will be supported by the positive effects of
cycling the annualised price increases from FY2023, and growth initiatives across the portfolio including
further international expansion. Ample Australian rice production, with the recently harvested CY23 crop of
approximately 500,000 paddy tonnes will underpin supply into key premium domestic and international
markets while supporting profitability in a number of the Group’s segments benefiting from the Riverina
crop.
Group profitability is also expected to grow in FY2024, further underpinned by improvements in shipping
conditions and costs, and the ongoing recovery of the CopRice segment as the benefits of its transformation
program are realised.
The Group however continues to navigate an environment where input costs such as raw materials, labour
and interest costs are expected to remain high. Combined with geopolitical uncertainties, volatility in
foreign exchange rates and the impact of the current high inflationary environment on consumer spending
trends, these factors may impact the expected earnings growth in FY2024.
The outlook for the Australian Rice Pool
While opportunities still exist in the short term for our Australian Rice and international supply chains, these
are expected to be countered to a degree by the drought in the U.S. breaking earlier than originally
expected. Given the likely resulting increase in competition in key markets in FY2024 and a reduction in
global rice prices in both consumer and tender markets, the paddy price range of $390 to $450 per tonne
announced in February 2023 for the CY23 crop remains in place at this stage. The outlook for CY24 crop
plantings, which will be processed and marketed in FY2025, also remains positive with Southern New South
Wales water storages currently over 90% full. This is expected to result in a fourth consecutive year of
abundant Australian rice production in FY2025, with the Riverina storage and milling asset footprint
expected to fully recover its operating costs.
Our Strategy
SunRice’s Strategy has positioned the Group to grow, adapt and thrive in dynamic market conditions. The
Group continues to have a disciplined approach to capital management, and while external conditions have
not been favourable to more extensive merger and acquisition activity in FY2023, the Group continues to
explore a well-developed pipeline of potential strategic opportunities, including acquisitions as well as noncore asset divestments. The company also remains focused on innovation and investment in new product
development and strengthening the Group’s established branded position.
ASX Announcement
Acquisition of the minority interest in Trukai Industries Limited (PNG)
SunRice also announced today that it has entered into a Share Buy-Back Agreement under which it will
become the sole shareholder in Trukai Industries Ltd (Trukai). SunRice currently holds 66.23% of the shares
issued in Trukai. Please refer to the relevant ASX announcement for more information.

DYOR

i hold SGLLV

SunRice Group enters agreement to acquire 100% of Trukai
Industries Ltd (PNG)
Ricegrowers Ltd (SunRice) announces that it has today entered into a Share Buy-Back Agreement under
which it will become the sole shareholder in Trukai Industries Ltd (Trukai). SunRice currently holds 66.23%
of the shares issued in Trukai, a company which was incorporated in Papua New Guinea (PNG) in 1970 and
which is now the leading supplier of rice, with the number 1 rice brand, in the country.
The transaction will facilitate the buy-back of all the shares held in Trukai by Melanesian Trustee Services
Limited (as trustee and manager of the Pacific Balanced Fund) (MTSL). Following the buy-back, SunRice will
be the sole shareholder in Trukai.
Trukai will acquire MTSL’s 33.77% shareholding for PGK42,500,000 (approximately AUD17,500,000), which
will be financed through local debt facilities in PNG. Completion is scheduled to occur on 30 June 2023.
Upon completion, the MTSL-nominee Trukai directors will resign, at which point the Trukai Board will
comprise solely SunRice nominees.
Commenting on the sale, SunRice Group CEO Mr Rob Gordon said:
“The SunRice Group has a longstanding presence and proud history of investing in Papua New
Guinea for over 50 years through its subsidiary Trukai which now employs close to 1,000 local staff
and plays an important role in food security and in supporting communities across the country.
“Today’s announcement reflects our ongoing investment in Papua New Guinea and our
commitment to continue providing high quality, secure sources of rice to communities who rely
upon our products.”
Authorised by Kate Cooper, General Counsel and Company Secretary, SunRice Group

DYOR

i hold SGLLV

due to my recent sell-down activity in April to fund a new project , i find my SGLLV holding is larger than my WOW and COL holdings combined , maybe i pulled the correct rein this time
 
Interesting they have acquired 100% of their PNG rice company. Surely having locals as part owners is actually a good thing in a developing nation? PNG was about $13 million of profit before tax - @ 66% ownership - that could be around $20 million with full ownership. $17 million investment to potentially get $7 million more a year before tax? Seems like a reasonable investment (which assumes all PNG profit comes from that one venture)

It's certainly not a flash company, but can't really complain about this result. NTA is up about $50m as well. Definitely got some inventory to move.



 
tends to be illiquid ( which is not a strong deterrent o me )


A class( full voting shares ) are restricted to actual rise growers so a mob of accountants , lawyers or fund managers can't easily hi-lack the board

was looking for a long-term survivor here
 
The planets may be aligning for Ricegrowers.
With some good rains over the past few years, storages are full, water is "cheap", and the rest of the world looking to grow less rice , SGL may have its day in the sun.
From Zero hedge


CNBC provides a breakdown of why rice supplies are strained.


Mick
 
I no longer hold ricegrowers, but for anyone who does , you might want to keep an eye on problems in Northern NsSW where an outbreak of Fungal Disease has given cause to have some rice crops destroyed.
From ABC News
I would probably be getting out tomorrow, should I still hold it.
Mick
 
cheers !

decisions , decisions

should i crystallize the profit i have

or wait for ( close to ) $5 to add more

( i hold )

but thanks for the heads up

good old NSW can't wait to outdo Victoria at self-destruction
 
NSW Government’s decision to end NSW rice vesting

On 8 April 2024, the NSW Government released the 2023 ABARES ‘Independent Report into NSW rice vesting arrangements’ (ABARES Report) and the NSW Government’s Response to that report (NSW Government’s Response).


Since the release of the NSW Government’s Response, SunRice, together with the Ricegrowers Association of Australia Inc. (RGA) has been engaging with Minister for Agriculture, the Hon. Tara Moriarty MP and the Premier’s Office to highlight the potential consequences of the proposed changes to the rice vesting legislation.

The NSW Government has foreshadowed that it will today announce that it will introduce draft legislation to end statutory rice export marketing (‘vesting’) arrangements by 1 July 2025.

Commenting on this proposal, SunRice Group Chairman Laurie Arthur said: “Although SunRice has previously advocated for the NSW rice vesting arrangements in their current form to be retained, we believe that the NSW Government’s proposal for a partial deregulation between Southern and Northern Growers, over a prolonged timeframe, would have created uncertainty for our industry at a time when we need greater flexibility to adjust to a new operating environment.
“We believe today's anticipated announcement of the NSW Government’s decision to end vesting by 1 July 2025, is the right decision for our growers, the SunRice business and the future of the NSW rice industry as it provides greater certainty into the future.
“With the finalisation of the ABARES Report last year, our industry’s operating environment is expected to undergo substantial change.

We are now facing the impacts of the Federal Government’s Restoring Our Rivers Act 2023, which became law in December 2023, increasing the likelihood of significant water recovery before the next proposed vesting review date.

The impact of this reform is likely to have an unfavourable impact on the availability and cost of water in Southern NSW and accordingly on the Riverina rice industry.

“To retain a strong rice industry, and to maximise returns for our growers in Australia, we consider that a dynamic and flexible model now makes better sense for the industry.
Without some of the regulatory constraints of vesting, we believe that SunRice will be able to work more directly with growers to give the industry the best chance of long-term sustainability as we navigate through new challenges, including water reform, that have accelerated the need for the industry to transition.
“In particular, SunRice is now able to assess new contracting and pricing options for growers, which should enable the business to be able to better match supply with demand from our premium markets.
These new structures should enable both large and smaller rice growers to participate in the industry in a way that better suits each grower’s circumstances while ensuring ASX Announcement more consistent supply, which is in the best interests of our growers, shareholders and the SunRice Group.
“We will be working with the NSW Government, our growers and industry partners to map out the challenges ahead and ensure a well communicated and structured transition in the lead up to 1 July 2025.
“SunRice is a diversified global marketing and sourcing business with operations in 10 countries, rice sourcing from 12 countries and consumer markets in over 50 countries.

The rice sourced by the SunRice Group from NSW which is affected by today’s foreshadowed changes makes up approximately 30% of the total rice sourced and sold by the Group each year1 .

We believe this reform will strengthen our ability to secure good quality Australian rice, which, along with rice from our diversified international supply chain, will help drive value for our shareholders.”

Authorised by the SunRice Board of Directors

i hold SGLLV
 
SunRice Group to make strategic acquisition of SavourLife

The SunRice Group’s CopRice business will expand further into the branded pet food market after signing a share purchase agreement to acquire 100% of SavourLife.

SavourLife is an Australian pet food company, which specialises in premium dog food and treats, while striving to deliver on its social mission to save and re-home abandoned dogs.
• The SunRice Group has entered into an agreement to acquire 100% of SavourLife for A$20.3 million.
• SavourLife will be integrated into the SunRice Group’s CopRice business, in line with its strategic objective to further expand into the branded companion animal market.
• The acquisition will utilise CopRice’s existing manufacturing and nutrition capabilities,to help accelerate the growth of SavourLife while continuing to deliver on its social mission.
• SavourLife is expected to be accretive to CopRice’s EBITDA contribution to the SunRice Group in FY25.
• This investment demonstrates the SunRice Group’s ongoing execution against its strategy to move into branded products.Inspired by a love for dogs and a desire to make a difference, SavourLife offers a range of Australian made premium dog food and treats.
The SavourLife team is driven by a social mission, to save and re-home abandoned dogs, by donating 50% of profits to help save rescue dogs (an arrangement CopRice is proud to support post-acquisition).
Since its inception, SavourLife has donated more than$8 million to Australian dog rescue organisations and supported the re-homing of more than 63,000dogs.
Commenting on the acquisition, SunRice Group CEO, Paul Serra said:“This acquisition positions our CopRice business to further expand into the branded companion animal market, where we’ve seen growing demand for premium products. We believe that SavourLife is well positioned to continue to grow in Australia, with Australia having one of the highest dog ownership rates in the world.

SavourLife will also complement CopRice’s existing products, which are known for their quality ingredients.

CopRice already manufactures SavourLife's dog food range.
The acquisition will useCopRice’s existing manufacturing facilities and supply chain to improve efficiencies and provide future growth opportunities.
We look forward to working with Michael McTeigue,SavourLife’s Founder and the SavourLife team to continue to deliver on SavourLife’s mission of making a difference and continuing to support dog rescue groups.”SavourLife’s Founder, Michael McTeigue said:“I am excited by the opportunity for CopRice to help continue to grow the SavourLife business,which will expand our ability to deliver on our mission. CopRice has been an important partner in building SavourLife into the business it is today, and I know that together we will build an even greater business into the future.”

Michael McTeigue will continue in his role with SavourLife, alongside Co-founder Kimberlee McTeigue and all other SavourLife employees who will remain in the business.

Further DetailsThe SunRice Group will acquire 100% of the shares in SavourLife Pty Ltd and SavourLife IP Pty Ltd and 100% of the units in the SavourLife IP Unit Trust for a purchase price of A$20.3 million.

SavourLife had Revenue of $33.4 million and normalised EBITDA of circa $2.8 million in the year to April 30, 20241.
As an existing manufacturer for SavourLife, only incremental revenues will be recognised by CopRice going forward.

SavourLife is expected to be accretive to CopRice’s EBITDA contribution to the SunRice Group inFY25.

The Sydney-based business has a national presence with its Australian made products available across all regions of Australia, from major cities to regional areas.

Completion of the transaction is expected to occur by 30 August 2024, pending satisfaction of a number of standard conditions precedent.

The purchase price will be funded from existing cash reserves and available debt facilities.

More information about SavourLife can also be found at: https://www.savour-life.com.au/

- ENDS -

Authorised by Kate Cooper, General Counsel and Company Secretary, SunRice Group

i hold SGLLV

an uncomfortable amount of spin here ( compared to predicted income boost )
 
SunRice Group 1H FY25 Half Year Financial Results:
Solid financial performance with growth in profit margins​

• Group revenue for 1H FY25 of $912 million, compared to $919 million in 1H FY24
• Solid growth in earnings, with EBITDA of $67.9 million and NPAT of $31.9 million, up 7% and 5% respectively on the prior corresponding period
• Fully franked interim dividend of 15 cents per B Class Share declared
• Estimated range for CY24 pool updated to $380 - $420 per tonne for medium grain
• Completed acquisitions of SavourLife and Simply Delish in 1H FY25, bolstering the CopRice and Riviana Foods segments respectively
• Continued progress against Sustainability Strategy in 1H FY25, including near-term and long-term science-based emissions reduction target being validated by SBTi
• The Group expects full year results to show revenue broadly consistent with FY24, moderate growth in EBITDA on the back of improved profit margins and NPAT to be impacted by a higher effective tax rate.

SunRice is pushing deeper into global markets through its branded products aimed at tapping into consumer convenience as it attempts to reduce its reliance on selling rice in bulk and battling against private labels to becoming a one of Australia’s biggest food exporters.
SunRice is now selling into nearly 50 markets around the world, exporting flagship Australian rice and specialist products including rice cakes, flavoured rice and flour into Japan and the Middle East and Europe.

The shift helps limit SunRice’s exposure to swings in global rice markets, with prices starting to pull back over the past year with growing giant India resuming export sales.

SunRice’s chief executive Paul Serra says it is no longer about putting “rice in a bag” and shipping it around the world. “That’s something that we’ve been focused on now for the last 18 months with more volume into branded products, more volume into differentiated products,” he said.

SunRice has been developing new products for local export markets as it continues to push up the value chain, including rice in a microwave cup and protein chips. More recently, it has moved into up-market pet food through the acquisition of SavourLife. It’s not all new territory for SunRice, for years it has operated feedstock business with rice a key ingredient.

SunRice sources around 25 per cent of its rice from Australian farmers, which is almost all medium grain rice, which is better known for its use in sushi and related products. The rest is sourced from SunRice’s mills in Vietnam, California, as well as countries from Thailand to India.
Serra said prices for long grain are pulling back quickly after shooting up as much as 50 per cent following India putting in place its export bans. These have since come off, which has seen prices return to more historical normal levels. At the same time, political tensions in the Middle East in impacting shipping and sales.

.
SGLLV - ASX listed B Shares ... A Shares held by growers
 
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