Ridley Posts $97.8m EBITDA, Raises Dividend to 5.00 Cents Fully Franked

Robust Financial Performance Amid Strategic Reset

Ridley Corporation Limited (ASX, RIC) has reported a commendable set of FY25 results, showcasing an 8.6% increase in EBITDA to $97.8 million and an 8.7% rise in net profit after tax (NPAT) to $43.3 million. These gains reflect the company’s successful execution of its strategic reset, which included exiting lower-return operations such as the phased withdrawal from extruded aquafeed and the sale of the Wasleys Feedmill in South Australia.

The company’s disciplined approach to capital management is evident in its underlying leverage ratio of 0.6 times EBITDA, comfortably below its target range of 1-2 times. This conservative balance sheet position was supported by a strong operating cash flow conversion rate of 97%, underscoring Ridley’s operational efficiency and cash generation capabilities.

Strategic Acquisitions and Organic Growth Initiatives

FY25 saw Ridley complete the acquisition of the Carrick Feedmill in Tasmania for $8.1 million, which has already been scaled to two shifts to meet growing demand. Additionally, the company is progressing with a binding agreement to acquire the Incitec Pivot Fertilisers distribution business for $300 million, with completion expected by the end of Q3 2025. This acquisition marks a significant expansion into fertilisers, adding a third growth pillar to Ridley’s portfolio.

Organic growth projects also featured prominently, including the commissioning of the $9 million Oceania Manufacturing Plant (OMP) lease facility in Timaru, New Zealand, and the completion of a debottlenecking project at the Clifton Feedmill in Queensland. These initiatives are designed to enhance capacity and efficiency, particularly in the packaged feeds and ingredients segment, which experienced margin growth driven by premiumisation in the petfood sector.

Segment Performance and Dividend Policy

The Bulk Stockfeeds segment delivered an 8% increase in EBITDA to $47.8 million, supported by volume growth in both ruminant and monogastric feeds and higher-margin supplementary feeding during dry conditions. Meanwhile, the Packaged Feeds & Ingredients segment posted a 5% EBITDA rise to $62.9 million, aided by acquisition synergies and volume growth in ingredient recovery and packaged dog food sales.

Reflecting confidence in its earnings outlook and cash flow, Ridley declared a final dividend of 5.00 cents per share, fully franked, bringing the total dividend for FY25 to 9.75 cents per share. The company maintains its capital allocation framework targeting a dividend payout ratio of 50-70% of NPAT.

Sustainability and Future Outlook

Ridley continues to advance its 2030 sustainability commitments, focusing on smarter ingredient sourcing, optimised production processes, and meaningful partnerships to reduce environmental impact and support local communities. The integration of the Incitec Pivot Fertilisers business is underway, with plans to streamline operations and realise efficiency gains.

Looking ahead to FY26, Ridley anticipates continued earnings growth driven by margin improvements in packaged feeds, volume growth in bulk stockfeeds, and contributions from the fertiliser acquisition. The company’s strategic focus on operational excellence, disciplined capital management, and targeted acquisitions positions it well to navigate evolving market conditions.