SunRice FY22 revenue hit US$1.3B record high as Australian rice returns to key markets

AUSTRALIA—SunRice Group, AUSTRALIA’S single-desk rice marketer has posted a record revenue of US$1.3 billion for its financial year ended April 30, up 30 per cent on the last financial year (FY21).

SunRice CEO Rob Gordon said the result came after two years of near record-low Australian rice production during which the company diverted resources to maintain supply of key markets with rice from other origins, and invested in acquisitions and progressing other organic growth initiatives.

Additionally, a full-year contribution of the KJ&Co Brands business, acquired in FY21 by SunRice’s Riviana Foods segment drove an uplift in revenue and profitability for Riviana Foods

This when combined with other existing brands, now provides the company with consistent earnings decoupled from the Australian agricultural cycle.

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“This improved FY2022 result was the consequence of the return of Australian rice to key markets, the accretive contribution of recent acquisitions, and the group’s multi-origin, multi-price point international rice-supply capability,” Mr Gordon said.

He also recognized the tremendous input of SunRice workers saying, “It was also the result of the incredible dynamism and efforts of our people, who continued to demonstrate extraordinary resilience two years into the COVID-19 pandemic.”

SunRice’s international sourcing program allowed demand of more than 1.1 million paddy tonnes to continue to be met at different price points through a multi-origin supply capability that covered 11 countries in FY22, and improved profitability was seen in key Pacific markets.

Results were delivered despite challenging trading conditions and continued headwinds, including unprecedented escalation in freight rates, and systemic supply chain disruption.

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Mr Gordon said SunRice was well positioned for FY23 and beyond. “This is particularly the case given the resurgence in Australian supply, our capabilities in international rice sourcing and emerging drought conditions in key rice-production areas around the globe.”

As broader disruption from the Ukraine conflict persists and a number of rice-growing regions are either in or entering drought around the world, the continued resurgence of Australian rice coupled with SunRice’s multi-origin, multi-market rice capability, has it well placed to benefit this year from an environment where key markets are under-supplied.

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