Ridley Corporation (ASX:RIC): How Did Fertiliser Expansion Shape FY26 Earnings?

Aditi Sarkar

26 October 2026 11:31 PM AEDT

Ridley Corporation (ASX:RIC): How Did Fertiliser Expansion Shape FY26 Earnings?

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Highlights

Ridley Corporation (ASX:RIC) reported FY26 underlying EBITDA of AUD 157.8mn, up 61.8% YoY.
FY26 revenue from continuing operations reached approximately AUD 2.86bn, reflecting the fertiliser acquisition.
Bulk Stockfeeds EBITDA reached AUD 50.3mn, while Packaged Feeds and Ingredients EBITDA was AUD 51.6mn.
Ridley shares finished the 23 October 2026 session at AUD 2.62, unchanged for the day.

Ridley Corporation (ASX:RIC) supplies animal nutrition, stockfeeds, feed ingredients and agricultural fertiliser products across Australian farming and food-production markets. Its FY26 results reflected the addition of a fertiliser distribution business and higher earnings in Bulk Stockfeeds, alongside weaker results in ingredients processing. In the market, Ridley Corporation (ASX:RIC) shares closed at AUD 2.62 on 23 October 2026.

Business Overview

The group operates through Fertilisers, Bulk Stockfeeds, and Packaged Feeds and Ingredients. Bulk Stockfeeds supplies feed to livestock producers, while packaged products and ingredient recovery serve animal nutrition and petfood channels. Fertiliser distribution broadens the group’s exposure to crop production and seasonal agricultural demand. These divisions respond to different factors, including livestock production, cropping patterns, raw-material prices and customer purchasing decisions.

FY26 Results: Revenue and Underlying Earnings

For the year ended 30 June 2026, revenue from continuing operations reached approximately AUD 2.86bn, compared with about AUD 1.30bn in FY25. Underlying EBITDA rose 61.8% YoY to AUD 157.8mn, while underlying net profit after tax increased 41.5% YoY to AUD 61.0mn. The acquired fertiliser distribution operations contributed nine months of trading, making the reported year-on-year growth partly acquisition-driven rather than solely organic.

The distinction between statutory and underlying results is relevant. Statutory net profit after tax was approximately AUD 27.6mn, affected by individually significant items, including acquisition accounting and an impairment relating to NovaqPro. Operating cash flow was approximately AUD 122.4mn, compared with AUD 68.3mn in FY25. Ridley Corporation (ASX:RIC) ended the year with net debt of approximately AUD 295.9mn following investment in the acquired business.

Operating Segments and Recent Developments

The Fertilisers business recorded AUD 72.2mn of EBITDA during its first nine months under group ownership. Management identified higher fertiliser margins and supply sourcing as factors, although elevated fertiliser prices moderated some customer demand. The business also began operating-model changes following the acquisition, including a regional distribution structure.

Bulk Stockfeeds generated EBITDA of AUD 50.3mn, approximately 5% higher YoY. Monogastric feed volumes increased 7%, and ruminant feed volumes rose 4%, supporting utilisation and distribution activity. Meanwhile, Packaged Feeds and Ingredients produced EBITDA of AUD 51.6mn, down AUD 11.4mn YoY. Operational difficulties at processing facilities and weaker ingredient-market conditions offset growth in packaged dogfood. Ridley Corporation (ASX:RIC) reported a 33% increase in packaged dogfood volumes.

FY27 Outlook and Execution Priorities

Management expects earnings growth in each segment during FY27. The principal drivers identified are a full-year earnings contribution from Fertilisers, additional integration benefits, increasing volumes and plant utilisation in Bulk Stockfeeds, and operational recovery in Packaged Feeds and Ingredients. These expectations depend on execution and market conditions, rather than representing completed financial outcomes.

Risks and Factors to Monitor

Commodity and input-price volatility may influence product margins, working capital and customer demand. Seasonal weather patterns, animal-disease events and livestock production also affect volumes. Integration expenses and debt servicing remain relevant following the fertiliser acquisition. In ingredient recovery, facility reliability and commissioning progress are important because disruptions can constrain volumes and costs even when end-market demand is present.

Key Insights

Ridley Corporation (ASX:RIC) expanded its earnings base in FY26 through fertiliser distribution while recording different results across its animal nutrition activities. The reported rise in underlying EBITDA contrasts with lower statutory profit, making the separation of acquisition effects, underlying trading and one-off charges important. The next reporting periods will show whether operational improvements and integration measures translate into the FY27 earnings growth management anticipates.

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