Ridley Corporation Limited · ASX:RIC
Ridley — H1 FY2025 Earnings Presentation
30 slides from Ridley's earnings presentation, Feb 20, 2025
Slide 1: FY25 1H Results
ASX: RIC FY25 1H RESULTS Quinton Hildebrand - MD & CEO Richard Betts - CFO 20 February 2025
Slide 2: FY25 1H Financial Summary
1 FY25 1H FINANCIAL SUMMARY 2 EBITDA (reported) Statutory NPAT EARNINGS GROWTH $50.6m $22.2m 5 +9.3% YoY growth +3.5% YoY growth ― 9.3% EBITDA growth 4 ― OMP contribution exceeded expectations OPERATING CASH FLOW (underlying) ROFE (underlying) DISCIPLINED CAPITAL MANAGEMENT $49.2m 10.4% pcp $35.1m p
Slide 3: Bulk Stockfeeds Segment
BULK STOCKFEEDS SEGMENT The Bulk Stockfeeds Segment EBITDA decreased by $1.3m on pcp: • High margin supplementary feeding of beef and sheep during dry conditions in Q1 FY24 did not repeat. • Margins were also impacted by the extended impact from the AI outbreak which resulted in cost inefficiencies
Slide 4: Packaged Feeds & Ingredients Segment
PACKAGED FEEDS & INGREDIENTS SEGMENT The Packaged Feeds & Ingredients Segment EBITDA increased by INGREDIENT RECOVERY BRANDS $4.2m on pcp due to: • OMP contribution and cost efficiencies; and • Volume growth in Ingredient Recovery (6%) and Packaged dog sales (7%). Partly offset by: • Lower Ingredien
Slide 5: Business Reset
BUSINESS RESET PAST 3 YEARS CURRENT RESET The FY26 - FY28 Growth Plan – Framework2 In the past 3 years Ridley has: Restructuring the organisation to: Continue the focus on cost efficient organic growth and value accretive acquisitions by: • improved asset utilisation and reduced unit costs • further
Slide 6: Financial Results
FINANCIAL RESULTS LEADING ANIMAL NUTRITION FY25 1H RESULTS | 20 February 2025 6
Slide 7: Profit & Loss Summary
PROFIT & LOSS SUMMARY CONSOLIDATED RESULT ($M) FY25 1H FY24 1H ANALYSIS OF RESULTS EBITDA – Bulk Stockfeeds 21.7 23.0 See segment performance reporting – p3 EBITDA – Packaged Feeds and Ingredients 35.7 31.5 See segment performance reporting – p4 EBITDA – Ongoing operations before significant items 5
Slide 8: Balance Sheet
BALANCE SHEET BALANCE SHEET ($M) DEC 2024 JUNE 2024 ANALYSIS OF BALANCES AND MOVEMENTS Cash & cash equivalents 40.9 34.2 Cash is a function of timing of receipts/payments and draw down/repayment of bank funding Increase in inventory of $1.7m across both Bulk Stockfeeds and Packaged Feeds and Ingredi
Slide 9: Working Capital
WORKING CAPITAL $21.0m underlying reduction Significant reduction in underlying working capital since December 2023, due to: •1 Disciplined receivables management and reduction in Aqua Feed sales (extended trading terms) ($M) 1 • 2 Underlying inventory was lower as commodity 2 market conditions did
Slide 10: Cash Management
CASH MANAGEMENT CONSOLIDATED CASH FLOW ($M) FY25 1H FY24 1H ANALYSIS OF MOVEMENT Consolidated EBIT 35.5 33.8 Consolidated EBIT after significant items Increase in line with capital expenditure and increase in the amortisation of the OMP customer Depreciation and amortisation 15.1 12.5 contracts acqu
Slide 11: Capital Management – Net Debt
CAPITAL MANAGEMENT – NET DEBT NET DEBT ($M) AND LEVERAGE (TIMES) • Strong operating cash flow generated in Cumulative FY25 1H vs FY24 1H - $49m vs $35m acquisition spend of $67m (OMP $59m + Carrick $8m) • Acquisition related spend of $67m over CY24, with $14m in FY25 H1 (OMP: $6m and Carrick $8m) •
Slide 12: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK OPERATING CASH FLOW DELIVERED IN FY25 1H • Earnings resilience with underlying EBITDA up 5.5% coupled with high cash conversion of 96% Maintenance & ESG Capital (~60 – 80% of Depreciation) and Working Capital • Maintenance & ESG capital ($7.3m) - 70% of Depreciation • Di
Slide 13: Ridley Sustainability 2030 Scorecard – Progress Update
RIDLEY SUSTAINABILITY 2030 SCORECARD – PROGRESS UPDATE FOCUS OF OUR 2030 COMMITMENTS FY24 2030 The full text of our 2030 Commitments are set out in Ridley's Annual Report FY23 Target Today* Commitment SMARTER INGREDIENTS Sourcing high-quality raw materials that Purchase soybean products from supplie
Slide 14: FY23 – FY25 Growth Plan Update
FY23 – FY25 GROWTH PLAN UPDATE LEADING ANIMAL NUTRITION FY25 1H RESULTS | 20 February 2025 14
Slide 15: FY23 – FY25 Growth Plan
FY23 – FY25 GROWTH PLAN KEY INITIATIVES FY22 FY23 FY24 FY25 ● NovaqPro® international sales ● Growing with aqua customers ● Companion animal sales ● Premiumisation of rendered products EBITDA ● Tallow & protein meal trading Earnings Growth Packaged & ● NovaqPro® operating efficiencies Ingredients Se
Slide 16: FY23 - FY25 Growth Plan: Bulk Stockfeeds
FY23 - FY25 GROWTH PLAN: BULK STOCKFEEDS BULK STOCKFEED GROWTH UPDATE • Continuing to deliver volume growth by STRATEGY Leverage the flywheel effects of scale, customer value proposition extend our role in the supply chain and enhance our market leadership position. • Feedmill utilisation high on st
Slide 17: Bulk Stockfeeds Growth Update
BULK STOCKFEEDS GROWTH UPDATE CARRICK FEEDMILL ACQUISITION UPDATE • Integration completed • Second shift fully operational • New Tasmanian customers to fill second shift capacity in FY25 2H • Further value creation through optimisation between mainland and Tasmanian supply LEADING ANIMAL NUTRITION F
Slide 18: FY23 - FY25 Growth Plan: Packaged Feed & Ingredients
FY23 - FY25 GROWTH PLAN: PACKAGED FEED & INGREDIENTS INGREDIENT RECOVERY (FORMERLY RENDERING) GROWTH UPDATE • Maroota facility (NSW) operating at capacity STRATEGY “CLIMBING THE WALL OF VALUE” to support new contracts. Project underway Invest in processing capability to optimise processing efficienc
Slide 19: Ingredient Recovery Growth Update
INGREDIENT RECOVERY GROWTH UPDATE NEW TIMARU (NZ) OMP FACILITY • Construction on track for October 2025 completion • New plate freezing capability to meet customer requirements • Facility will accommodate expansion aspirations • First trial shipment from NZ to petfood customers in Thailand LEADING A
Slide 20: FY23 - FY25 Growth Plan: Packaged Feed & Ingredients
FY23 - FY25 GROWTH PLAN: PACKAGED FEED & INGREDIENTS PACKAGED PRODUCTS ACCELERATED THE PIVOT INTO PACKAGED PETFOOD STRATEGY AQUA NUTRITION • Growth in third-party packaged petfood Extend our rural market share (FEED/SECTOR SUPPORT) opportunities requiring the return to 24/7 by leveraging our nationa
Slide 21: Outlook
OUTLOOK LEADING ANIMAL NUTRITION FY25 1H RESULTS | 20 February 2025 21
Slide 22: FY25 Outlook
FY25 OUTLOOK Ridley’s business portfolio, with its diversified spread of operations and markets, continues to provide resilience in managing inflationary pressures, biosecurity events and changes in commodity cycles. In FY25, Ridley expects earnings1 growth from: • the contribution from OMP • increa
Slide 23: Important Notice and Disclaimer
The material in this presentation is general background information about the activities of Ridley Corporation Limited (ACN 006 708 765) and its related entities (Ridley), current as at the date of this presentation, unless otherwise stated. The content is information given in summary form and does
Slide 24: Historical Financial Information
HISTORICAL FINANCIAL INFORMATION LEADING ANIMAL NUTRITION FY25 1H RESULTS | 20 February 2025 24
Slide 25: Profit & Loss Summary
PROFIT & LOSS SUMMARY CONSOLIDATED RESULT ($M) FY25 1H FY24 1H FY23 1H FY22 1H FY21 1H EBITDA – Ongoing operations before significant items 57.4 54.5 50.8 45.7 37.6 Corporate Costs (6.8) (6.5) (6.7) (6.5) (5.2) Consolidated EBITDA before significant items 50.6 48.0 44.1 39.1 32.4 Significant items b
Slide 26: Balance Sheet - Assets
BALANCE SHEET - ASSETS BALANCE SHEET ($M) DEC 24 JUNE 24 DEC 23 JUNE 23 JUNE 22 Cash & cash equivalents 40.9 34.2 38.9 43.0 27.1 Inventory 107.0 105.3 102.4 107.0 117.1 Trade and other receivables & prepayments 133.3 135.0 142.3 133.0 133.1 Tax assets and derivative financial instruments - 0.4 - 0.7
Slide 27: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES BALANCE SHEET ($M) DEC 24 JUNE 24 DEC 23 JUNE 23 JUNE 22 Current trade and other payables 214.2 224.2 196.0 205.2 202.2 Current lease liabilities 6.5 5.1 7.0 4.2 4.4 Current provisions 15.2 14.6 15.9 15.6 15.2 Current tax liabilities 2.2 5.0 1.0 - 11.9 Current derivative
Slide 28: Cash Management
CASH MANAGEMENT CONSOLIDATED CASH FLOW ($M) FY25 1H FY24 1H FY23 1H FY22 1H FY21 1H Consolidated EBIT 35.5 33.8 31.5 39.5 (11.0) Depreciation and amortisation 15.1 12.5 12.6 29.6 26.2 Consolidated EBITDA 50.6 46.3 44.1 69.1 15.2 Movement in working capital, excluding OMP and Carrick 0.2 (11.2) 12.4
Slide 29: Net Debt, Gearing & Leverage
NET DEBT, GEARING & LEVERAGE MAJOR CAPITAL PROJECTS ($M) FY25 1H FY24 1H FY23 1H FY22 1H FY21 1H Development capital expenditure 7.4 9.9 8.5 3.4 2.6 Maintenance capital expenditure 10.6 7.7 6.7 2.7 4.2 Net debt and gearing ($m) Dec 24 Dec 23 June 23 June 22 June 21 Gross debt 110.0 82.5 72.5 50.0 12
Slide 30: Thank You
LEADING ANIMAL NUTRITION THANK YOU LEADING ANIMAL NUTRITION FY25 1H RESULTS | 20 February 2025 30