Director, RaaS Advisory, Research as a Service (RaaS)

Research as a Service (RaaS)

Director, RaaS Advisory

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Equity Bottom-Up

<ul><li>Ricegrowers Limited, trading as SunRice (ASX:SGLLV), has released its H1 FY24 results, delivering RaaS adjusted EBITDA of $69m (+68%) and adjusted NPAT of $33.3m (+107%), both well above RaaS estimates of $57.6m and $25m respectively.</li><li>Divisionally the key surprise was International, delivering adjusted EBITDA of $33m, 125% above the PCP and 57% above RaaS estimates on the back of increases scale and reach, price increases and lower freight costs.</li><li>Operating cash flow was the strongest since H2 FY18 despite a high tax payment as working capital improved from lower receivables and inventory reductions. </li></ul>

Ricegrowers Limited, trading as SunRice (ASX:SGLLV), has released its H1 FY24 results, delivering RaaS adjusted EBITDA of $69m (+68%) and adjusted NPAT of $33.3m (+107%), both well above RaaS estimates of $57.6m and $25m respectively.Divisionally the key surprise was International, delivering adjusted EBITDA of $33m, 125% above the PCP and 57% above RaaS estimates on the back of increases scale and reach, price increases and lower freight costs.Operating cash flow was the strongest since H2 FY18 despite a high tax payment as working capital improved from lower receivables and inventory reductions. 

Ricegrowers Limited (SunRice) - Earnings Visibility Improves into FY26

<ul><li>Ricegrowers Limited, trading as SunRice (ASX:SGLLV), held its AGM last week and provided some updated commentary around trading for FY24.</li><li>Most notably, the ‘strong momentum from H2 FY23 has continued into Q1 FY24’, remembering H2 FY23 EBITDA increased 37% on the pcp.</li><li>Factors supporting this growth include the cycling of annualised price rises, additional pricing reviews, international market expansion, improvement in freight and logistics costs, and the ongoing recovery in the CopRice business.</li></ul>

Ricegrowers Limited, trading as SunRice (ASX:SGLLV), held its AGM last week and provided some updated commentary around trading for FY24.Most notably, the ‘strong momentum from H2 FY23 has continued into Q1 FY24’, remembering H2 FY23 EBITDA increased 37% on the pcp.Factors supporting this growth include the cycling of annualised price rises, additional pricing reviews, international market expansion, improvement in freight and logistics costs, and the ongoing recovery in the CopRice business.

Ricegrowers Limited (SunRice) - AGM Commentary Supports RaaS Estimates

<ul><li>Ricegrowers Limited, trading as SunRice (ASX:SGLLV), has reported its FY23 results and provided some outlook commentary for FY24.</li><li>The FY23 result delivered adjusted revenue growth of 23%, EBITDA growth of 28%, NPAT growth of 18% and EPS growth of 14%, all above RaaS’ estimates.</li><li>The full-year dividend was raised from $0.40/share to $0.50/share (fully franked yield of 7.3%) and we view this level as sustainable near- term given outlook comments and have increased our assumptions accordingly. </li></ul>

Ricegrowers Limited, trading as SunRice (ASX:SGLLV), has reported its FY23 results and provided some outlook commentary for FY24.The FY23 result delivered adjusted revenue growth of 23%, EBITDA growth of 28%, NPAT growth of 18% and EPS growth of 14%, all above RaaS’ estimates.The full-year dividend was raised from $0.40/share to $0.50/share (fully franked yield of 7.3%) and we view this level as sustainable near- term given outlook comments and have increased our assumptions accordingly. 

Ricegrowers Limited (SunRice)-  FY23 Earnings Beat and FY24-FY26 Upgrades

<ul><li>The latest release of the USDA Rice Crop Outlook Report (April 13) provides useful data on the global and US rice markets, which has implications for the rice-related businesses within Ricegrowers Limited, trading as SunRice (ASX:SGLLV).</li><li>The global rice market is forecast to see the second consecutive year of demand exceeding supply (due mainly to supply issues), with global-ending rice stocks expected to be the lowest since 2017/2018 and equal to just four months’ demand.</li><li>Prices for most grades, as a result, remain at record highs (US-medium-grain, which is a proxy for Australian grades) or trending higher in recent months (including Thailand +4%-5% and Vietnam +7%). </li></ul>

The latest release of the USDA Rice Crop Outlook Report (April 13) provides useful data on the global and US rice markets, which has implications for the rice-related businesses within Ricegrowers Limited, trading as SunRice (ASX:SGLLV).The global rice market is forecast to see the second consecutive year of demand exceeding supply (due mainly to supply issues), with global-ending rice stocks expected to be the lowest since 2017/2018 and equal to just four months’ demand.Prices for most grades, as a result, remain at record highs (US-medium-grain, which is a proxy for Australian grades) or trending higher in recent months (including Thailand +4%-5% and Vietnam +7%). 

Ricegrowers Limited (SunRice) - Global Market Forecasts Positive for SunRice

<ul><li>We have compiled a summary of the results and outlook statements for our assessed peers of Ricegrowers Limited, trading as SunRice (ASX:SGLLV), with a particular focus on trading conditions, product pricing, freight costs, outlook statements and consensus earnings changes.</li><li>The overwhelming summary of trading conditions over CY22 was ‘challenging’ outside of Treasury Wine Estates (ASX:TWE) and Ridley Corporation (ASX:RIC).</li><li>The overwhelming outlook commentary assumes normalising weather conditions, price increases recouping cost inflation, lower freight costs, improved labour availability and higher earnings. </li></ul>

We have compiled a summary of the results and outlook statements for our assessed peers of Ricegrowers Limited, trading as SunRice (ASX:SGLLV), with a particular focus on trading conditions, product pricing, freight costs, outlook statements and consensus earnings changes.The overwhelming summary of trading conditions over CY22 was ‘challenging’ outside of Treasury Wine Estates (ASX:TWE) and Ridley Corporation (ASX:RIC).The overwhelming outlook commentary assumes normalising weather conditions, price increases recouping cost inflation, lower freight costs, improved labour availability and higher earnings. 

Ricegrowers Limited (SunRice) - H1 FY23 Highlights Relative Freight Opportunity

Australia

Ricegrowers Limited, doing business as SunRice, operates as a rice food company. The Company processes and distributes rice products such as rice blends and snacks. SunRice serves customers worldwide.

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Ricegrowers Ltd (SGLLV AU)

Ricegrowers Limited (SunRice) - Earnings Visibility Improves into FY26

Ricegrowers Limited, trading as SunRice (ASX:SGLLV), has released its H1 FY24 results, delivering RaaS adjusted EBITDA of $69m (+68%) and adjusted...

Research as a Service (RaaS)

Ricegrowers Limited (SunRice) - AGM Commentary Supports RaaS Estimates

Ricegrowers Limited, trading as SunRice (ASX:SGLLV), held its AGM last week and provided some updated commentary around trading for FY24.

Research as a Service (RaaS)

Ricegrowers Limited (SunRice)- FY23 Earnings Beat and FY24-FY26 Upgrades

Ricegrowers Limited, trading as SunRice (ASX:SGLLV), has reported its FY23 results and provided some outlook commentary for FY24.

Research as a Service (RaaS)

Ricegrowers Limited (SunRice) - Global Market Forecasts Positive for SunRice

The global rice market is forecast to see the second consecutive year of demand exceeding supply (due mainly to supply issues)

Research as a Service (RaaS)

Ricegrowers Limited (SunRice) - H1 FY23 Highlights Relative Freight Opportunity

The overwhelming summary of trading conditions over CY22 was ‘challenging’ outside of Treasury Wine Estates (ASX:TWE) and Ridley Corporation...

Research as a Service (RaaS)

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