SunRice Group (ASX:SGLLV) released its FY26 full year financial results on 25 June 2026. The announcement reported net profit after tax (NPAT) of $73.3 million, up 4% on FY25, and Revenue of $1.80 billion, compared with $1.85 billion a year earlier. It also set out an FY27 outlook in which the company expects Group revenue to be slightly below FY26 and NPAT to be materially lower.

WHAT SUNRICE GROUP DOES

SunRice Group, whose parent entity is Ricegrowers Limited, is a rice-focused food Business with branded and sourcing operations across Australia, the Pacific, the Middle East, the United States and other markets. The announcement refers to branded markets, the Australian rice operations, a global sourcing model, and new products such as Trukai Bakers Flour in Papua New Guinea and SunRice Protein+ Rice in the United States and Australia and New Zealand.

The company has a dual class share structure. A Class Shares carry voting rights but no right to dividends, are not quoted on the ASX, and may only be held by rice growers who meet production quotas. B Class Shares are quoted on the ASX, carry Dividend rights and generally do not carry voting rights at general meetings.

FY26 FINANCIAL RESULTS

Key results included EBITDA of $143.6 million, down 3% on FY25, and an EBITDA Margin of 8%, in line with the prior year. Diluted Earnings per B Class Share were 102.6 cents, up 1%. The CY25 (FY26) paddy price was $400 per tonne for medium grain rice, compared with $406 in CY24 (FY25).

The Board declared a total fully Franked Dividend of 70 cents per B Class Share, up 8% on FY25 and described in the announcement as a record. Net Debt was reduced to $151.0 million and gearing was 19% as at 30 April 2026.

Chief Executive Officer and Managing Director Paul Serra said the year included a challenging external environment, with foreign exchange volatility, heightened competition in key markets, the impact of lower Australian crop mill out rates and reduced rice supply. He referred to investments in brands and people to advance the company's 2030 Growth Strategy, which carried upfront costs in FY26, particularly in Australia and New Zealand.

FY27 OUTLOOK

The company expects FY27 Group revenue to be slightly below FY26, and NPAT to be materially lower than FY26. It expects the EBITDA margin to compress, and earnings to be heavily skewed towards the second half as the Group absorbs most of the transitional costs of a smaller crop in the first half.

On revenue, SunRice expects underlying growth across key branded markets, supported by expanded distribution and consumer uptake in the Middle East, new product launches, recovery in Pacific markets and pricing initiatives in Australia and New Zealand. It said these effects are expected to be offset by a substantially smaller CY26 Australian rice crop, which it attributed to drier conditions and reduced water allocations in the Riverina, and by the appreciation of the Australian dollar against currencies such as the US dollar, particularly if sustained. The company said it is unlikely at this stage to participate in lower value bulk rice tenders, while global sourcing is expected to support Supply to key branded markets.

On profitability, the company expects underlying earnings to continue to grow, supported by branded revenue growth, operational discipline and cost saving initiatives, but said that, as in prior lower crop cycles, the smaller Australian crop is expected to cause cost inefficiencies and under absorption in its Australian rice operations.

RISKS AND WHAT TO WATCH

The announcement identifies several factors that could affect FY27 performance. These include the size of the Australian rice crop and the associated under absorption of costs, currency movements affecting the translation of foreign earnings, and competition in key markets. The company also stated that geopolitical instability, particularly in Europe and the Middle East, has not significantly affected trading conditions to date, but that the fluidity of events may affect its ability to trade as planned in FY27.

FY26 revenue, EBITDA and paddy price were each lower than the prior year, while NPAT and dividends were higher. The FY27 outlook describes lower NPAT and a compressed EBITDA margin.

NEXT MILESTONES

The company scheduled a webcast for 14:30 AEST on Thursday 25 June 2026 to discuss the results. Its Annual General Meeting and B Class Meeting are scheduled for 3 September 2026, with two Grower Director positions to be filled. The terms of John Bradford and Ian Mason expire at the meeting, and Ian Mason has decided not to stand for re-election. Nominations were due by 5.00pm on Friday 3 July 2026. Further information is available in the FY26 Operating and Financial Review and the 2026 Annual Report.