Animal feedstock supplier Ridley Corporation has lifted its annual profit by 30 per cent and plans to modernise some of its feedmills.
Ridley's net profit for the year to June 30 rose 30.4 per cent to $27.6 million, but excluding profits and losses from discontinued operations in 2015 and 2016, profit was up 5.7 per cent to $27.2 million.
Ridley sold 1.94 million tonnes of stockfeed and rendered product in 2016, up from 1.90 million tonnes in 2015.
The company said it had delivered a strong result despite headwinds at two of its flagship businesses: rendering and aquafeed.
In the aquafeed business, salmon volumes were impacted by warm summer waters in southern Tasmania which temporarily halted feed production.
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Ridley expects to get more growth out of its current asset portfolio in the coming years and continues to develop plans to modernise its feedmills in some key regions.
"We are continuing our discussions to secure the requisite commitments for a number of potential new feedmill projects and hope to be able to make a positive announcement in the coming year," Ridley said on Monday.
Ridley also said it was continuing to trial the efficacy of the prawn feed ingredient Novacq, after securing a site at Yamba in NSW to produce the product.
In addition, the company hopes to provide some guidance on the process and timing for the development of former salt fields at Moolap near Geelong, Victoria, once it has some clarity on the state government's plans for the Corio Bay peninsula.
Ridley shares were 0.75 cents lower at $1.3975 at 1147 AEST.
RIDLEY ANNUAL PROFIT UP 30PCT
* Full-year profit up 30.4pct to $27.6
* Revenue from continuing operations up 0.5pct to $912.6m
* Final dividend up 0.5 cents to 2.5 cents per share, fully franked
