Ridley Corp to explore further expansion in Asia
Ridley Corporation, Australia's largest animal feed and salt producer, has announced a small profit increase and the firms intention to expand further in Asia.
Net profit for the year ended June 30, 2011, was $29.31 million, up 0.8% on the previous year's figure of $29.09 million. Sales revenue for FY 2011 fell slightly by 0.6% to $723.7 million, down from $727.96 million for the previous financial year.
Ridley Managing Director John Murray said in a statement that the firm will explore further expansion in Asia beyond its existing small but profitable salt business in Indonesia.
"Discussions with the Indonesian government and feasibility studies have commenced for Ridley to establish a commercial-scale salt field in Indonesia," Mr Murray said.
If approved, the project would significantly reduce Indonesia's reliance on large volumes of imported salt.
During 2011, Ridley acquired the niche poultry and fish rendering business Camilleri Stockfeeds, its first acquisition for several years.
Mr Murray said the firm would seek out more acquisitions.
While the long-term outlook was positive for Ridley, there would a number of risks to profit in 2012, including overstocking of certain stockfeed products and the higher unit cost of salt to be harvested.
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