Ridley profits more than halved

28-08-2008 | |

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.

Powerpoint presentation of results
Full company report

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