Ridley Corporation’s annual meeting trading update reveals mixed early-year results, according to Morgans research analyst Belinda Moore. Bulk stockfeeds are currently outperforming, while the packaged and ingredients segment faces margin pressure. Ridley Corporation is an Australian company that manufactures and supplies animal nutrition solutions. They provide a range of products and services to the agriculture and aquaculture industries.
According to Moore, the acquisition of Integrated Products Fertiliser (IPF) is delaying the company’s FY26-28 growth plan. An investor day is now expected after the release of the first-half results to provide an updated timeline. The bulk stockfeeds segment is experiencing benefits from increased volumes and supplementary feeding within the beef and sheep sectors. In contrast, the packaged and ingredients segment is being affected by oversupplied protein meal prices and lower OMP ovine raws.
IPF’s contribution is reportedly in line with expectations for fertiliser. However, one-off acquisition-related items will be accounted for in the first half. Moore noted the potential for efficiency improvements and operational streamlining across IPF. She forecasts an FY26 underlying EBITDA of $161.6 million, which represents a 65 per cent increase compared to FY25. This projection reflects anticipated synergies from the IPF acquisition and benefits from business reset initiatives.
Ridley’s diversified portfolio and growth initiatives are expected to bolster earnings momentum through FY27, which will be the first full year including IPF. In morning trade, shares in Ridley experienced a decline of 0.7 per cent.
