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News 219 views last update:6 Aug 2012

Ridley profits more than halved

Ridley Corporation Limited (Ridley) in Australia announced a net profit for the year ended 30 June 2008 of AU$10.5 million, compared to AU$22.7 million last year.

Ridley AgriProducts earnings declined by 18% in response to losses incurred in its supplements business unit and reduced demand primarily in the beef sector which impacted the division's northern region mills.

Feed volumes were down 12%, particularly in the dairy, beef and sheep sectors. Poultry and pig feed volume levels remained largely unchanged despite the pig sector being under significant economic pressure. Increased margins partly offset the volume decline.

The division's northern region mills in Queensland performed poorly in response to the reduced beef volumes.

The aquafeed business continued to perform well and was well above last year.

Seasonal conditions and a poor operating performance at a newly commissioned supplements facility resulted in losses in that business unit.

North American operations
Ridley Inc's US feed operations performed particularly strongly due to improved margins resulting from good positions in a generally rising ingredient markets (mainly vitamins and trace minerals) and a continuation of the trend of changing product mix from high volume, low margin complete feeds towards higher margin products like supplements and premixes.

This, together with strict cost controls, offset a small decline in volumes overall.

In Canada a restructuring program implemented at the end of the first half of the year saw the business return to profitability.

The Canadian operations continue to be impacted however by the strength of the Canadian dollar and high feed costs which are impeding production economics for beef and pork producers. Volumes were 5% lower than last year.

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