Ridley Corporation Ltd (ASX:RIC) will go ex-dividend on 6 October 2026 for a final dividend of $0.053 per share, which the company's results describe as 5.35 cents per share. The dividend is fully franked at 100% and is payable on 22 October 2026, with a record date of 5.00pm on 7 October 2026. The total cash outlay is approximately $20.1 million. Investors buying shares on or after the ex-date will not be entitled to the payment. During FY26, Ridley also paid an interim dividend of 5.10 cents per share, fully franked, on 24 April 2026, while the FY25 final dividend was 5.00 cents. The company targets a dividend payout ratio of 50% to 70% of net profit after tax under its capital allocation framework.

The record date of 7 October falls one day after the ex-date, which is the standard sequence on the ASX. Shareholders who held shares before the ex-date and remain on the register at the record date are expected to receive the payment. The dividend reflects what the company described as a year of improved operating performance following the fertiliser acquisition.

Company Overview

Ridley Corporation is an Australian manufacturer and distributor of premium, high-performance animal nutrition products. Its businesses include Bulk Stockfeeds, which supplies feed to livestock producers, and Packaged Feed and Ingredients, which includes packaged animal feeds and rendering operations. From 1 October 2025, following the acquisition of Incitec Pivot Fertilisers, Ridley also distributes fertiliser products through a new Fertilisers segment. This acquisition significantly increased the size of the group and broadened its exposure to agricultural markets across Australia.

Recent Developments

Ridley released its Appendix 4E preliminary final report for the year ended 30 June 2026 on 20 August 2026. Key figures include:

  • Revenue from continuing operations increased 119.9% to $2,864.2 million, reflecting the inclusion of the fertiliser business.
  • EBITDA before individually significant items (ISIs) rose 61.9% to $157.8 million.
  • Statutory profit after tax was $27.6 million, down 36.4%.
  • Profit after tax before ISIs increased 41.1% to $61.0 million.
  • ISIs after tax were an expense of $33.5 million, comprising a $28.7 million impairment for NovaqPro and a net $4.8 million expense related to the acquisition of Incitec Pivot Fertilisers.
  • Net tangible assets per share were $1.03, compared with $0.91.

By segment, Fertilisers contributed EBITDA before ISIs of $72.2 million for nine months of ownership, at the higher end of expectations. Higher margins from rising global market prices, linked to the Middle East conflict, were partly offset by lower than expected volumes as prices affected farm economics. A regional distribution model was implemented in the Fertilisers business in February 2026, delivering cost savings and improved regional focus.

Bulk Stockfeeds EBITDA before ISIs increased by $2.4 million to $50.3 million, while Packaged Feed and Ingredients EBITDA before ISIs fell by $11.4 million to $51.6 million. The company invested $43.6 million in maintenance capital, including works on the main dam at its Maroota rendering plant, and $23.4 million in growth capital. Safety metrics were steady, with a lost time injury rate of 10 and a total recordable frequency rate of 12.

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 an operational recovery and improved commodity outlook in Packaged Feed and Ingredients.

Sector Context

Australian agribusiness companies supplying feed and fertiliser operate in markets influenced by weather, commodity prices and farm incomes. Livestock feed demand depends on herd sizes, pasture conditions and grain prices, while fertiliser demand is linked to cropping activity and global fertiliser prices. Geopolitical events can significantly affect fertiliser supply and pricing, as most of Australia's fertiliser is imported.

The industry also faces biosecurity risks, input cost inflation and energy costs. Companies with diversified operations across feed and fertiliser may be better placed to manage seasonal and cyclical swings, though integration of large acquisitions can be complex. Dividend payouts in the sector often vary with earnings, which can be affected by seasonal conditions.

Fertiliser distribution in Australia involves importing and storing large volumes of product ahead of key planting seasons, which can tie up working capital. Prices for nitrogen and phosphate fertilisers are influenced by global energy costs and supply from major producing regions. Distributors with regional networks may benefit from closer relationships with farmers and agents.

Risks

Ridley's statutory profit was reduced by impairments and acquisition costs, and further impairments are possible if business conditions change. The fertiliser business is exposed to global price volatility and farm economics, which affected volumes in FY26. Integration of Incitec Pivot Fertilisers is ongoing, and the expected benefits may take time to be realised. Packaged Feed and Ingredients earnings declined, and a recovery is not guaranteed. Weather events and biosecurity threats could affect demand. Future dividends depend on earnings within the 50% to 70% payout range, and share prices typically adjust on the ex-dividend date.

Rendering operations and packaged feed businesses can be affected by input costs and demand from pet food and aquaculture customers. The impairment of NovaqPro indicates that some investments may not deliver expected returns.

Catalysts to Watch

Investors may watch for payment of the final dividend on 22 October 2026, updates at the annual general meeting, and progress on fertiliser integration. Seasonal conditions, fertiliser price trends and the recovery in Packaged Feed and Ingredients will be relevant to whether the company delivers the expected earnings growth in each segment in FY27.

Any updates on integration savings in Fertilisers, including the regional distribution model introduced in February 2026, will also be relevant. Commentary on the dividend payout ratio within the 50% to 70% range may help investors gauge future dividends.

Final Thoughts

Ridley's fully franked final dividend of 5.35 cents goes ex on 6 October, with payment on 22 October. FY26 was transformed by the fertiliser acquisition, and FY27 expectations centre on growth across all segments.