Today, the Ridley Corporation Ltd (ASX: RIC) share price was flat at 71 cents after the company released its financial results for the year to 30 June 2020.
How did Ridley fare in FY20?
Ridley Corp reported revenue of $967.94 million for FY20. This was down 3.5% compared to the 2019 financial year.
The animal nutrition company pointed to three factors for the revenue drop. They included the expiry of a supply agreement with Inghams, the pass through of raw material movements and lower sales due to the coronavirus pandemic.
Net profit after tax (NPAT) for the 2020 financial year was -$8.64 million. Significant items that affected NPAT were the closure and replacement of 3 feedmills with one large facility, together with restructuring costs, asset impairments and the settlement of a legal claim.
The company's earnings before interest, tax, depreciation and amortisation (EBITDA) from ongoing operations were $64.3 million in FY20, an increase of 8.2% compared to FY19.
Ridley had earnings per share (EPS) of -2.8 cents in the 2020 financial year compared to 7.6 cents in FY19. Earnings per share before significant items were 7.1 cents in FY20.
The company reported a 13% improvement in financial performance from ongoing operations in FY20.
Ridley invested $42.9 million in capital expenditure which included an investment in Novacq production in Thailand.
Ridley's net debt at 30 June 2020 was $147.2 million. The company's board suspended its final dividend to pay down debt.
However, company said its growth strategy was expected to deliver improved earnings in the 2021 financial year.
About the Ridley share price
The animal nutrition company is Australia's largest livestock feed producer. It has a history dating back to 1987.
In June 2020, Ridley opened a new mill in Wellsford, Victoria. This was part of the company's recent rationalisation and asset renewal program.
The Ridley share price was trading at 71 cents at the close of trade today, up 7.58% since its 52-week low of 66 cents. However, the Ridley share price has dropped 31.07% since the beginning of 2020 and is 29% lower than this time last year.
