Ridley Reports Strong Earnings Growth in First Half of 2025

Australia’s largest stockfeed manufacturer, Ridley Corporation Limited, has showcased impressive growth in earnings and profits during the first half of the 2025 financial year, ending December 31, 2024. This performance is particularly notable when compared to the corresponding period in the previous year.

In a recent announcement detailing the 1H25 results, Ridley’s managing director and chief executive officer, Quinton Hildebrand, reported a consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) of $50.6 million. This figure represents a robust increase of 9.3 percent compared to the $46.3 million recorded in 1H24.

Furthermore, Ridley’s net profit after tax for the same period reached $22.2 million, reflecting a 3.5 percent rise from $21.4 million in 1H24. This growth can be attributed in part to the integration of two recent acquisitions: the Carrick feedmill in Tasmania and Oceania Meat Processors, which operates across Australia and New Zealand.

“The period under review included the first full months of contributions from Oceania Meat Processors, which exceeded our expectations,” Mr. Hildebrand stated during his address to shareholders.

Segment Performance Analysis

Ridley categorizes its operations into two primary segments: bulk stockfeeds and packaged feeds and ingredients. The bulk stockfeeds segment generated an EBITDA of $21.7 million, a decline of 5.7 percent from the record $23 million achieved in 1H24. Mr. Hildebrand attributed this decrease to reduced supplementary feeding in the beef and sheep sectors compared to the previous year’s first quarter.

Additionally, the company faced challenges stemming from an avian influenza outbreak in Victoria, which had a prolonged impact on operations. However, these challenges were somewhat mitigated by underlying volume growth in the ruminant business, particularly within the dairy sector, and improvements in the monogastric feed segment following the resolution of prior genetic issues affecting the broiler industry.

In the bulk feed category for monogastrics, volume increased by 2.2 percent compared to 1H24, while ruminant feed volume grew by 2.8 percent. Mr. Hildebrand expressed optimism regarding the Carrick feedmill, which broke even during its first four months under Ridley’s ownership. He anticipates a stronger performance in the current half-year, thanks to increased production levels.

“As planned, we have implemented a second shift at Carrick, which is set to enhance our output significantly,” he noted. This strategic decision allows for the redirection of volumes previously produced at Ridley’s mill in Victoria’s Gippsland region, which were being transported to Tasmania. The company has also begun attracting new customers in Tasmania, benefiting from its position as a local supplier.

Operational Efficiency Initiatives

Ridley’s Clifton plant on Queensland’s Darling Downs is also undergoing significant efficiency improvements. The recently completed debottlenecking of the Clifton feedmill has enabled the transition from a 24/7 operation to a more cost-effective 24/5 schedule, which is expected to reduce operational costs at that facility.

In the packaged feeds and ingredients segment, Mr. Hildebrand highlighted changes at the Nerangba plant in Brisbane’s north. Due to a surge in demand for third-party packaged pet food, the Nerangba facility is being reinstated to a 24/7 operational model. This shift follows a temporary reduction to 24/5 operations last year, which was necessitated by lower demand.

“The increasing demand for dog food has prompted us to enhance our operational capacity, and we are actively recruiting to resume full 24/7 operations,” Mr. Hildebrand explained. This growing demand for pet food has led Ridley to strategically withdraw from the domestic aquafeed market, allowing for additional capacity at Nerangba, where pet food production is more profitable.

Future Growth and Strategic Focus

Mr. Hildebrand announced that Ridley’s exit from domestic aquafeed production would primarily take place during the 2025 fiscal year, with a remaining contract extending into FY26 to meet existing obligations. He emphasized that the company intends to concentrate its aqua expertise on the commercialization of NovaqPro in the global prawn market, starting with Thailand, which has already registered the booster. Countries such as India, Indonesia, and Ecuador are expected to follow suit in 2025.

Additionally, Mr. Hildebrand mentioned ongoing debottlenecking efforts at the Maroota and Laverton facilities to accommodate increased production volumes. The company has also strengthened its team to better serve the burgeoning pet food sector, which remains a key focus area moving forward.

With the contribution from Oceania Meat Processors enhancing volume growth in ingredient recovery and packaged dog food sales, Ridley is poised for continued expansion. The construction of OMP’s new facility in Timaru, New Zealand, is expected to be completed before October, allowing the company to explore new market opportunities for increased production.

As Ridley embarks on its three-year growth plan, the focus on expanding bulk stockfeeds and optimizing operations positions the company for sustained success in the competitive stockfeed market.

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