Ridley Corporation Ltd reported a 61.8% rise in underlying earnings before interest, tax, depreciation and amortisation to A$157.8 million for the 2026 financial year, driven by contributions from the Incitec Pivot Fertilisers acquisition and operational improvements across its feed and ingredients segments.
The company’s shares fell 1.67% to A$2.95 on August 19, 2026, after closing at A$2.65 on June 30, 2026, despite the earnings beat. Ridley’s managing director and CEO Quinton Hildebrand highlighted that Incitec Pivot Fertilisers contributed A$72.2 million in EBITDA during its first nine months under Ridley’s ownership, while the Bulk Stock Feeds division delivered A$50.3 million in EBITDA, up 5% year-on-year. Packaged dog food sales surged 33% due to private-label contracts and improved plant efficiency, though the Packaged and Ingredient segment reported EBITDA of A$51.6 million, down A$11.4 million from the prior year.
The company’s earnings per share increased to A$0.153 from A$0.135 in the prior corresponding period, supported by a final fully franked dividend of A$0.0535 per share, equating to a 64% payout ratio of underlying net profit after tax. Underlying tax expense totalled A$21.4 million, with an effective tax rate of 25.8%, below the statutory rate of 33%.
Ridley’s net debt rose to A$296 million from a net cash position of A$64 million in the prior period, which included A$125 million from a capital raise. Headline leverage stood at 0.85 times, below the company’s target range of 1.0 to 2.0 times, while liquidity headroom remained robust at A$444 million. Operating cash flow reached A$122 million, including A$40 million in one-off acquisition, integration and restructuring costs, while corporate costs increased by A$3.1 million to A$16.3 million.
Capital expenditure rose to A$67 million, with growth capex accounting for A$23 million, up A$3 million year-on-year. Depreciation and amortisation increased by A$13.1 million to A$43.4 million, while net finance costs climbed A$22.5 million to A$32.2 million, including A$22.8 million in cash interest paid.
The company recorded a gain on bargain purchase of A$37.5 million related to the fertiliser acquisition, revised down from a provisional A$55.9 million, alongside A$33.8 million in after-tax acquisition and integration costs. IT integration expenses reached A$13.3 million and are expected to total A$30 million, with synergies of A$7 million targeted over the first two years, including A$3.5 million in FY 2027. Headcount reductions are expected to deliver A$8 million in savings in FY 2027, while procurement savings of A$5 million to A$10 million are planned through FY 2028.
Ridley also took a non-cash after-tax write-off of A$28.7 million on Novaq Pro assets, citing slow commercialisation and geopolitical disruptions. Operational setbacks, including a process dam slip at the Maroota facility, commissioning issues at the Timaru plant and reduced lamb slaughter numbers, weighed on the Packaged and Ingredient segment. Bulk Stock Feeds saw monogastric sales volumes rise 7% and ruminant volumes increase 4%.
Management expects earnings growth across all three segments in FY 2027, with IT, procurement and headcount synergies contributing to cost reductions. The fertiliser acquisition, completed in September 2025, provided nine months of contribution for FY 2026, while Ridley’s strategy day held in Geelong on March 10, 2026, outlined long-term operational priorities.
