Ridley Corporation Limited (ASX:RIC) published its Annual Report 2026, with the directors authorising the financial statements for issue on 20 August 2026. The report covers the year ended 30 June 2026 and shows Revenue of $2,864.2 million, compared with $1,302.6 million, and EBITDA before individually significant items of $157.8 million, up 61.8%, following the Acquisition of the Incitec Pivot Fertilisers distribution business.

WHAT RIDLEY CORPORATION DOES

Ridley describes its offering as nutrition for soil, livestock and pets. Its Manufacturing and distribution network spans fertiliser, ingredient recovery, livestock feed and pet food. It has three reportable segments: Bulk Stockfeeds, Packaged Feeds and Ingredients, and Fertilisers.

It operates 13 feed mills, an extrusion plant, a supplements plant and five ingredient recovery sites in Victoria, New South Wales and New Zealand. Incitec Pivot Fertilisers, which Ridley describes as Australia's largest supplier of plant nutrition products and services, has 17 sites on the east coast. Ridley has about 1,000 employees.

FY26 FINANCIAL RESULTS

EBITDA before individually significant items was $157.8 million compared with $97.5 million. Net profit after tax before significant items was $61.0 million, up 41.5%, and Earnings Per Share before significant items were 16.3 cents. Statutory net profit after tax was $27.6 million compared with $43.3 million, and Basic Earnings Per Share were 7.4 cents compared with 13.5 cents. Individually significant items totalled $33.5 million after tax. These included a finalised gain on bargain purchase of $37.5 million, offset by acquisition and integration costs of $34.6 million, an unwind of the inventory Fair Value uplift of $7.1 million, restructuring costs of $4.9 million and an Impairment of $31.8 million relating to NovaqPro.

Operating cash flow was $122.4 million compared with $68.3 million, and the company reported net Debt of $295.9 million compared with net cash of $64.7 million. Headline Leverage was 0.85 times against a target range of 1.0 to 2.0 times, and Liquidity headroom was $444 million against Facility limits of $740 million. The report states that NPAT return on funds employed (ROFE) was 8.0%, down from 10.6%. A final Dividend of 5.35 cents per share, fully franked, is payable on 22 October 2026, following an Interim Dividend of 5.10 cents. The company's Capital allocation framework targets a Payout Ratio of 50% to 70% of NPAT.

By segment, Fertilisers contributed EBITDA of $72.2 million over nine months of Ridley's ownership. Bulk Stockfeeds EBITDA was $50.3 million compared with $47.8 million. Packaged Feeds and Ingredients EBITDA was $51.6 million compared with $62.9 million, which the company attributed to capacity constraints at CSF Proteins, ovine raw material constraints and commissioning delays at Oceania Meat Processors, partly offset by 33% growth in packaged dog food volumes.

THE FERTILISER ACQUISITION AND RELATED ITEMS

Ridley acquired Incitec Pivot Fertilisers from Dyno Nobel on 30 September 2025 for $409.6 million, comprising $357.5 million in cash and $52.1 million of deferred consideration in vendor notes with a Face Value of $50 million. The acquisition accounting is provisional and may be adjusted until the measurement period ends no later than 30 September 2026.

In May 2026 Ridley entered a Fertiliser Security Facility Agreement with an Australian Government body, under which it entered contracts for difference on fertiliser inventory. These had a favourable Market Value of $53.6 million at 30 June 2026, accounted for as a government grant deducted from inventory, and will be recognised in cost of sales when the related inventory is sold in FY27.

For FY27, Ridley expects earnings growth in each segment, driven by integration benefits and a full year contribution in Fertilisers, Volume growth and capacity utilisation in Bulk Stockfeeds, and operational performance recovery and an improved Commodity outlook in Packaged Feeds and Ingredients.

RISKS AND WHAT TO WATCH

The report lists acquisition integration risk, fertiliser supply, foreign currency, sustainability and climate change, and corporate risks. Statutory profit fell, and the NovaqPro Business was written down to nil as a commercial market had yet to materialise. Revenue from three customers totalled $665.8 million. Rabobank Working Capital facilities are uncommitted and classified as current liabilities. Environmental provisions were $41.6 million non-current, with timing and amounts uncertain. The IT systems migration is due to complete in FY27, and the company said leverage at 30 June 2026 benefited from early seasonal sales, with a typical June leverage for the enlarged group nearer the midpoint of the range.

NEXT MILESTONES

The final dividend is payable on 22 October 2026. The acquisition accounting measurement period ends no later than 30 September 2026. Further milestones include completion of the IT systems migration in FY27, the full year contribution from Fertilisers, the sell-through of inventory associated with the contracts for difference in FY27, and any outcome of Ridley's consideration of strategic alternatives for NovaqPro.