Ridley Corporation Limited (ASX: RIC), through its subsidiaries, operates stock feed mills, which produce and distribute animal feed products for the beef, dairy, pig and poultry industries. The Company also operates salt refineries and produces crude salt along with providing rural products and services.
Ridley Corporation Limited has recently announced its 1H FY19 results for the period ended 31 December 2018. As per the report the business has delivered a consolidated Net profit after tax (NPAT) of $16.1 million for the half year ended 31 December 2018 and a total comprehensive income of $15.7m.
The Group has recorded Earnings Before Interest and Tax (EBIT) of $22.2m, comprising $21.5m from Ridley Operations, less Corporate costs of $5.7m plus net Property income for the period of $6.4m.
The half-year result mirrors strong growth in Ruminant, boosted by growth in Laverton Rendering and Supplements, and reinforced by volume growth in Packaged Products for the first time in several years. As previously advised and compared to the previous corresponding period, Poultry business was down following the expiry of the Ingham’s supply agreement in October 2018 and Maroota Rendering was down as a result of the cessation of Red Lea raw material supply in April 2018. The Aquafeed result is consistent with the previous corresponding period after segregating the non-recurring Huon legacy inventory costs from the ongoing operations.
Sales of NovacqTM-inclusive domestic prawn feed products are skewed to the second half of the year, and a loss has been recorded for the first six months of NovacqTM operations since the domestic operations went live on 1 July 2018.
The Board of directors have approved a fully franked interim dividend of 1.5 cents per share payable on 30 April 2019. The Board has also approved the reinstatement of a Dividend Reinvestment Plan providing all Ridley shareholders with the opportunity to acquire Ridley shares at a small discount and free of transaction costs.
The management is of the view that the long-term outlook for Australian livestock remains positive, and Ridley plays a pivotal role in the well-being of this industry. There will be cyclical ups and downs, and the company need to deliver a compelling customer value proposition to assist farmers in working through the lean times and optimising their returns when conditions are more favourable.
Now, let us have a quick look at Ridley Corporation Limited’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $1.400, trading down by 0.356% during the day’s trade with a market capitalisation of ~$432.48 Mn. The counter opened the day at $1.375, reached the day’s high of $ 1.410 and touched the day’s low of $1.360 with a daily volume of ~53,395. The stock has provided a Year Till Date return of 11.51% & also posted gains of 4.85%, -4.42% & -2.43% over the past six months, three & one-months period respectively. It had a 52-week high price of $1.570 and touched 52 weeks low of $1.245, with an average volume of 142,094 approximately.
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